HR topics · PTO payout at termination by state

Is unused vacation (PTO) paid out at termination in California?

In California, accrued vacation is treated as wages at the end of employment (Labor Code section 227.3).

Is unused vacation paid out in California?

Yes. The Labor Commissioner explains that a discharged employee must be paid all wages, including accrued vacation, immediately at termination, and an employee who quits must be paid all wages, including accrued vacation, on the same timeline as the rest of the final pay.

When is the payout due?

At termination if fired; at quitting if the employee gave at least 72 hours' notice; otherwise within 72 hours of quitting.

General information, AI-prepared and checked against the official sources listed, not legal advice. Laws change, and cities, contracts and union agreements can add rules. Last reviewed October 2026. How answers are made