How paid leave accrual works in the US
There is no federal statutory annual leave in the United States. The Fair Labor Standards Act sets minimum wage and overtime but does not require employers to provide any paid vacation. What you actually earn comes from your employer's PTO policy or from a state or city paid sick leave law, and both are usually written as an accrual rate tied to hours worked.
Legal basis: the FLSA (29 U.S.C. ยง201 et seq.) contains no paid leave mandate, and the US Department of Labor confirms paid vacation is a matter of agreement between employer and employee. State paid sick leave statutes commonly use 1 hour of leave per 30 hours worked with an annual use cap around 40 to 48 hours, as in California Labor Code ยง246 and similar New York, Washington and Colorado laws. Figures are current as of September 2026 and state caps change, so check your own state statute and your employee handbook.
Whether unused leave must be paid out at separation also varies: some states treat accrued vacation as earned wages that cannot be forfeited, while others allow use-it-or-lose-it policies. This calculator is for reference only and is not legal advice. Consult a licensed attorney about your specific situation.
Frequently Asked Questions
No. The FLSA does not require paid vacation, paid holidays or paid sick days. Any paid time off comes from your employer policy, a union contract, or a state or local sick leave law.
Many state sick leave laws use 1 hour per 30 hours worked. Employer PTO plans often use a flat number of hours per pay period instead, so use the rate written in your handbook if it differs.
It depends on your state and your employer policy. Some states bar forfeiture of accrued vacation and require carryover of sick leave, while others permit use-it-or-lose-it rules.