Unused PTO at Termination: It Depends Heavily on Your State
Unlike some countries, the US has no federal law requiring employers to pay out unused vacation or PTO when you leave a job — it's left entirely up to state law and company policy. California is one of the clearest exceptions: state law treats accrued vacation and PTO as a form of earned wages, so it must be paid out at your final rate of pay when employment ends, and employers can't use "use it or lose it" policies that wipe out earned time (though they can cap how much accrues). Other states may allow forfeiture if it's clearly spelled out in the employee handbook, so it's worth checking your own state's rule before assuming a payout is guaranteed.
| Step | Formula |
|---|---|
| Daily pay rate | Hourly wage × 8 hours |
| Unused PTO payout | Unused days × daily pay rate |
This calculator applies California's payout rule using a standard 8-hour workday as an estimate. Actual payout rules, accrual caps, and whether "PTO" includes sick time all vary by state and by employer policy — confirm the exact rule that applies to you with HR or your state's labor department before relying on this figure for financial planning.
Frequently Asked Questions
Not under federal law — it depends on your state. California requires it; many other states leave it up to company policy.
California prohibits forfeiting earned PTO, though caps on accrual are allowed. Many other states permit forfeiture policies.
Unused days multiplied by your daily pay rate (hourly wage × 8 hours) at your final rate of pay.
※ Estimate only, based on California's rule. Payout laws vary by state — confirm with HR or your state labor department.