HR topics · PTO payout at termination by state

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

Texas only requires vacation payout if a written policy or agreement promises it.

Is unused vacation paid out in Texas?

Texas law does not require paid vacation. Under the Texas Payday Law, fringe benefits such as vacation pay are owed according to the employer's written policy or agreement. The Texas Workforce Commission recommends that the policy clearly state whether unused leave is paid out or forfeited.

When is a payout due?

If the written policy promises payout, it is part of final pay and generally follows the final-pay deadline (six calendar days after a discharge, or the next regular payday after a resignation), unless the policy sets a different schedule.

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