HR topics · PTO payout at termination by state

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

In New York, accrued vacation is paid out unless a written policy says otherwise.

Is unused vacation paid out in New York?

The New York State Department of Labor says it depends on the terms of the employer's policy. To make vacation forfeit, the employer must have told employees in writing of the conditions that cancel the benefit. If an employee has earned vacation and there is no written forfeiture policy, the employer must pay for the accrued vacation.

Do employers have to put their policy in writing?

Yes. Labor Law section 195 requires employers to notify employees in writing or by posting the policy on sick leave, vacation, personal leave, holidays and hours.

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