Paid Time Off Laws by State

Keeping up with paid time off (PTO) laws by state is essential for employers who want to remain legally compliant and minimize exposure to risk. Paying people properly and giving them their legally entitled benefits is also the right thing to do by your employees!

There are big differences in how different states approach PTO. This handy guide will delve into these variations, ensuring you have the latest information at your fingertips. That way you can get back to employee scheduling without you or your team worrying about the status of their PTO.

How do paid time off laws differ by state?

Paid time off (PTO) laws differ by state mainly in two aspects: whether employers are required to offer PTO to everyone on the payroll and the rules regarding the payout of unused PTO. 

Some states mandate paid sick leave or PTO, while others do not have any specific requirements. Additionally, certain states require employers to pay out accrued but unused PTO upon an employee's termination, whereas others leave this to the employer's discretion. These variations create a diverse legal landscape across the U.S. regarding PTO policies.

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Is PTO required by law?

The requirement for employers to provide PTO varies across states. While there is no federal mandate requiring private employers to offer paid leave, several states have instituted their own regulations. This disparity means that PTO policies can be vastly different depending on where a

What is a PTO payout?

A PTO payout refers to the practice of compensating employees for their unused paid time off. This policy can take various forms, such as paying out upon termination or at the end of a calendar year. Whether a company must provide a PTO payout often depends on state law and the company's internal policies.

When do you have to pay out PTO?

The obligation to pay out PTO hinges on state law and the employer's PTO policy. Some states mandate that unused PTO be paid out at the end of employment, while others leave this decision to company policy.

What are the paid time off laws in my state?

We’ve summarized state PTO law below, as well as which states pay out unused sick leave or vacation pay when an employee ends their employment.

Information is accurate at the time of publishing — and useful as a quick guideline — we recommend looking at the most up-to-date official state sources.

What are my state’s PTO laws?

Only 16 states have specific PTO laws. These are:

The other 34 states don’t have any specific policy on whether or not employers offer paid sick leave or vacation.

What are my state’s laws on PTO payouts?

States fit into several categories when it comes to PTO payouts.

20 U.S. states require companies to pay out the value of an employee’s unused earned paid time off when they end their employment:

Why do more states have PTO payout laws than PTO laws?

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The discrepancy between states with explicit PTO laws (16) and those with explicit laws on PTO payouts (20) can be attributed to the different aspects of PTO legislation that states choose to regulate. Here's a breakdown to clarify this:

So, a state may not require employers to provide PTO (thus not being counted among the 16 with explicit PTO laws) but could still have laws that dictate what happens to accrued but unused PTO when an employee leaves. This scenario explains why more states might have laws regarding PTO payouts than have laws mandating PTO.

This distinction is important because it demonstrates the complexity and variety of PTO-related legislation across different jurisdictions. Employers and employees should be aware of both the provisions for PTO accrual and use, as well as the regulations concerning payout of unused PTO in their specific state.

State PTO: the bottom line

PTO laws in the United States vary significantly from state to state.

While some states have explicit requirements for employers to provide PTO or paid sick leave, others do not mandate it at all. Additionally, the approach to PTO payout upon termination is equally diverse, with certain states enforcing payout laws and others leaving it to employer discretion.

This variety underscores the importance for both employers and employees to stay informed and understand the specific PTO regulations relevant to their state, ensuring compliance and fair practice.

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