PTO Payout Rules at Termination
Whether unused PTO is paid out depends on policy and state law. States such as California treat accrued PTO as wages and generally require payout at termination; some states allow use-it-or-lose-it, while others require carryover. Unlimited PTO usually has no accrued balance, so different rules apply.
Check first
Read the handbook/contract for accrual, caps, carryover and payout.
Check whether the state treats PTO as wages; resignation and termination rules can differ.
Unlimited PTO
No accrued balance usually means no payout, but policy and state law still matter.
Unlimited does not mean automatic approval; business needs and manager approval still apply.
FAQ
Can an employer wipe PTO?
It depends on state law; accrued PTO is protected in many states and cannot simply be erased.
What rate is payout based on?
Usually the regular rate at termination or accrual; whether bonuses/premiums count depends on state law.