When it comes to time and labor management, one of the most important areas is managing employee leave and paid time off (PTO). In order to properly manage paid time off and other leave laws, you need to know what laws apply to your business. Here is a guide of PTO laws by state for 2023, as well as some federal leave laws to be aware of.
State-by-State PTO Laws
When it comes to managing compliance, employee leave can be one of the toughest areas as every state is different.
Businesses must manage compliance with federal leave laws, such as the Family and Medical Leave Act (FMLA), as well as any local or state-specific paid time off laws.
Federal PTO Laws – FMLA
While there are no federal laws requiring paid time off, the Family and Medical Leave Act (FMLA) is a federal law requiring job-protected, unpaid leave for qualifying family or medical reasons.
FMLA applies to all employers in the United States with 50 or more employees. However, there are certain requirements in order for an employee to be eligible for FMLA leave and benefits.
Which States Have Their Own PTO Laws?
While not all states have PTO laws, here is everything you need to know about PTO in your state:
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Paid Time Off in Alabama
Alabama does not have a state PTO law, however, any employers who choose to offer PTO must adhere to their policies and notify employees in advance if they decide to discontinue or alter an existing policy.
Paid Time Off in Alaska
Alaska does not have a state PTO law, however, any employers who choose to offer PTO must adhere to their policies, including any agreements to payout PTO upon termination.
Paid Time Off in Arizona
Arizona does not have a state PTO law but does have paid sick leave. Employers should ensure they understand Arizona Paid Sick Leave well.
Paid Time Off in Arkansas
Arkansas does not have a state PTO law, however, any employers who choose to offer PTO must adhere to their policies, including any agreements to payout PTO upon termination.
Paid Time Off in California
While California does not have a law requiring paid or unpaid vacation time, any earned vacation time in the state is considered earned wages.
Important to note is that employers must payout any unused vacation time upon termination of employment unless a prior agreement has been made by both the employer and employee. Additionally, employers are prohibited from implementing use-it-or-lose-it policies but may implement a reasonable accrual cap for PTO.
Paid Time Off in Colorado
While Colorado does not have a law requiring paid or unpaid vacation time, any earned vacation time in the state is considered earned wages. Important to note is that sick time is not considered earned wages.
Employers in Colorado that do offer PTO must payout all accrued PTO upon termination or otherwise risk major legal and financial penalties.
Paid Time Off in Connecticut
Connecticut does not have a state PTO law, however, any employers who choose to offer PTO must adhere to their policies or otherwise risk major legal and financial penalties.
Paid Time Off in Delaware
Delaware does not have a state PTO law. Any PTO policy is up to the discretion of the employer. However, any employers who choose to offer PTO must adhere to their policies or otherwise risk major legal and financial penalties.
Important to note, is that Delaware has a specific requirement that if an employer’s policy includes a payout of unused accrued PTO upon termination, the payout must be made within 30 days of separation.
Paid Time Off in Florida
Florida does not have a state PTO law.
Paid Time Off in Georgia
Georgia does not have a state PTO law.
Paid Time Off in Hawaii
Hawaii does not have a state PTO law. However, any employers who choose to offer PTO must adhere to their policies or otherwise risk major legal and financial penalties.
Important to note, is that Hawaii has a specific requirement that if an employer’s policy includes a payout of unused accrued PTO upon termination, the payout must be made on the employee’s final day of employment.
Paid Time Off in Idaho
Idaho does not have a state PTO law.
Paid Time Off in Illinois
Illinois recently passed the Paid Leave for All Workers Act, which will go into effect on January 1st, 2024. The new law will provide employees with up to 40 hours of paid leave during a 12-month period.
Paid Time Off in Indiana
Indiana does not have a state PTO law, nor is vacation time considered wages (rather it is considered deferred compensation). However, any employers who choose to offer PTO must adhere to their policies or otherwise risk major legal and financial penalties.
There are other laws regarding employee leave in Indiana for employers to be aware of as well.
Paid Time Off in Iowa
While Iowa does not have a law requiring paid or unpaid vacation time, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Kansas
Kansas does not have a state PTO law, but employers who implement their own policy must adhere to that policy.
Important to note is that employers are liable to provide the vacation pay established in their policy unless they include one of the following two things in their policy:
- Employees will only earn vacation time when passing their anniversary date.
- Employees that separate prior to their anniversary dates will not be entitled to compensation.
Paid Time Off in Kentucky
While Kentucky does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Louisiana
While Louisiana does not have a law requiring that employers offer PTO, any employers that do offer PTO must payout employees for any unused PTO upon termination. It is also important that if an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Maine
Maine does not have a specific PTO law, per say, rather it has its own Earned Paid Leave Law, which provides paid leave to eligible employees that can be used for any reason, medical or vacation.
Maine Earned Paid Leave applies to businesses with more than 10 employees in Maine for more than 120 days in any calendar year.
Paid Time Off in Maryland
Maryland does not have any laws that require PTO. However, any employers who choose to offer PTO must adhere to their policies or otherwise risk major legal and financial penalties.
Important to note is that unless an employer has a policy in place that states the forfeiture of pay for accrued, unused PTO to a terminated employee, then the employer must payout the employee for said PTO.
Paid Time Off in Massachusetts
While Massachusetts does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Important to note is that employers in Massachusetts must payout employees upon termination for any unused, accrued PTO.
Paid Time Off in Michigan
While Michigan does not have a law requiring PTO, any earned vacation time in the state is considered a fringe benefit. Employers are required to payout fringe benefits included in their written policy upon separation.
Paid Time Off in Minnesota
While Minnesota does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Mississippi
Mississippi does not have a state PTO law.
Paid Time Off in Missouri
Missouri does not have a state PTO law.
Paid Time Off in Montana
While Montana does not have a law requiring paid or unpaid vacation time, any earned vacation time in the state is considered earned wages.
Important to note is that employers must payout any unused vacation time upon termination of employment if vacation has been promised in writing or verbally. Additionally, employers are prohibited from implementing use-it-or-lose-it policies but may implement a reasonable accrual cap for PTO.
Paid Time Off in Nebraska
While Nebraska does not have a law requiring PTO, any earned vacation time in the state is considered a type of fringe benefit and is considered wages.
Important to note is that employers must payout any unused vacation time upon termination of employment and are prohibited from implementing use-it-or-lose-it policies.
Paid Time Off in Nevada
Nevada does not have a state PTO law.
Paid Time Off in New Hampshire
While New Hampshire does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in New Jersey
New Jersey does not have any laws requiring PTO. It is also important to know that in New Jersey, accrued PTO is seen as a benefit and not as wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in New Mexico
New Mexico does not have any laws requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in New York
New York does not have any laws requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Important to note is that employers may use a “use-it-or-lose-it policy” in New York, but must provide advance notice to employees if they plan to do so.
Paid Time Off in North Carolina
North Carolina does not have any laws requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Important to note is that employers may use a “use-it-or-lose-it policy” in North Carolina, but must post a notice in writing of any policy that enforces such terms.
Paid Time Off in North Dakota
While North Dakota does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Important to note is that employers may use a “use-it-or-lose-it policy” in North Dakota, but must give employees notice of such a policy as well as reasonable time to use any accrued PTO.
Employers must also payout any unused, accrued PTO upon termination. However, private employers may revoke such a payment if:
- The employer gave the employee written notice at the time of hiring about this policy
- The employee has been employed for less than one year
- The employee gave fewer than five days’ notice before the separation
Paid Time Off in Ohio
Ohio does not have any laws requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Oklahoma
While Oklahoma does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Oregon
While Oregon does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Pennsylvania
While Pennsylvania does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Rhode Island
Rhode Island does not have a law requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Important to note is that Rhode Island does require that employers payout any accrued, unused PTO upon termination if the employee has been working for the employer for at least one year.
Paid Time Off in South Carolina
South Carolina does not have a law requiring PTO. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Specifically, South Carolina employers who offer PTO must:
- Give notice of the policy to the employee
- Abide by the policy
- Not discriminate in its administering of the policy
Paid Time Off in South Dakota
South Dakota does not have a state PTO law.
Paid Time Off in Tennessee
Tennessee does not require businesses to offer fringe benefits of any kind. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Texas
Texas does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Utah
Utah does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Specifically in Utah, if an employer plans to not payout accrued, unused PTO upon separation, this must be explicitly included in any PTO policy they have.
Paid Time Off in Vermont
Vermont does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Virginia
Virginia does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Washington
Washington does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in West Virginia
While West Virginia does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Wisconsin
While Wisconsin does not have a law requiring PTO, any earned vacation time in the state is considered earned wages. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Paid Time Off in Wyoming
Wyoming does not have a state PTO law. If an employer implements their own PTO policy, it is important that they adhere to their policies or otherwise risk legal and financial trouble.
Get Help Managing PTO and Other Employee Leave Policies
Companies who are struggling with PTO and other types of leave compliance may want to reach out to a payroll and HR company for help.
