Vacation Time Laws for Employees: 50-State Survey

Most states do not require employers to provide employees with any paid vacation time. However, employers who choose to provide vacation time must comply with applicable state laws, including when an employer must pay employees for unused earned vacation time upon separation from employment. Some state laws also place restrictions on how an employer may limit the vacation that they provide, such as whether they may implement caps or use-it-or-lose-it policies. In states with less comprehensive vacation time laws, vacation time benefits and obligations may be governed by employment agreements or an employer’s policies and practices. Collective bargaining agreements may also affect these benefits and responsibilities.

Deadlines

Deadlines to file an unpaid wage claim are generally 1-3 years from the date when the wages became due.

Vacation time laws may be enforced through a state’s labor department or another state agency, or through private civil actions. Many states have laws penalizing employers for failing to pay wages due after separation from employment within a certain period of time. While not specifically covered in this survey, state laws may also protect employees from discrimination and retaliation for asking their employer to adhere to state vacation time laws or filing a claim or threatening to file a claim with the appropriate state agency.

Click on a state below to learn more about vacation time laws in that state.

Alabama

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Alabama vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Alabama.

Alaska

  • State law: Alaska Statutes Section 23.05.140
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Alaska vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Alaska. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid within three working days if the employee is terminated, or on the next regular payday at least three days after the employer received notice if the employee voluntarily terminated employment.

An employer’s own rules for vacation time are enforced by the Alaska Department of Labor and Workforce Development. Penalties and remedies for failing to pay vacation upon separation from employment within the time required may include a penalty in the amount of the employee’s regular compensation from the time of demand to the time of payment or for 90 working days, whichever is less.

Arizona

  • State law: Arizona Revised Statutes Section 23-353; § 23-355; § 23-356
  • Paid vacation required: No
  • Earned vacation time considered wages: Yes, if an employer has a policy or practice of paying vacation time
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Arizona vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Arizona. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid within seven working days or at the end of the next regular pay period, whichever is sooner, if the employee is discharged. If the employee quits, it must be paid by the next regular payday for the pay period when the termination occurred.

This law is enforced by the Industrial Commission of Arizona if unpaid wages do not exceed $5,000 and a claim is filed within one year. It may also be enforced through private civil actions. Penalties and remedies for failing to pay vacation upon separation from employment within the time required may include recovery in the amount of triple the unpaid wages.

Arkansas

  • State law: Arkansas Code Section 11-4-405
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Arkansas vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Arkansas. If unused earned vacation time is to be paid upon discharge according to the employment agreement or the employer’s policy, it must be paid by the next regular payday.

This law is enforced by the Arkansas Department of Labor and Licensing and through private civil actions. Penalties and remedies for failing to pay vacation upon discharge within seven days of the next regular payday may include double the wages due.

California

There is no California vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages and is earned as work is performed. Unused earned vacation time generally must be paid as wages at the employee’s final rate of pay immediately upon termination, although an employer may have 72 hours or until the next regular payday under certain circumstances. An employment contract or policy cannot provide for the forfeiture of vested vacation time upon termination. Collective bargaining agreements may alter these requirements. An employment agreement may cap accrued vacation time at a certain amount, but use-it-or-lose-it policies are not legal in California. Employers may also impose a waiting period at the beginning of employment, during which no vacation is earned, or exclude part-time employees from vacation benefit policies.

This law is enforced by the California Labor Commissioner’s Office and through private civil actions. Penalties and remedies for willfully failing to pay vacation upon separation from employment may include a penalty in the amount of the employee’s rate from the due date until payment or until an action is commenced, up to 30 days.

Colorado

There is no Colorado vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages, and employment agreements dictate when vacation is earned. Unused earned vacation time must generally be paid immediately upon termination by an employer, or on the next regular payday if the employee quits or resigns. A furlough does not count as separation from employment if it is caused by a full or partial shutdown of employer operations and is planned and genuinely expected to not last longer than 30 days (or a longer duration consistent with a state of emergency declared by the state or federal government requiring the shutdown). Earned vacation pay cannot be forfeited, but employers can cap employees at a year’s worth of vacation pay.

This law is enforced by the Colorado Department of Labor and Employment, Division of Labor Standards and Statistics, and through private civil actions. Penalties and remedies for failing to pay vacation upon separation from employment within 14 days of written demand may include a penalty of 125 percent of the payment due (50 percent of anything over $7,500) or the amount of the employee’s average daily earnings for each day due (up to 10 days), whichever is greater. This penalty may increase by 50 percent for a willful failure to pay. The Division may also impose a fine of up to $50 per day for each failure to pay. Winning parties may recover attorneys’ fees and costs. The statute of limitations for actions under this law is two years, or three years for a willful violation.

Connecticut

  • State law: Connecticut General Statutes Section 31-72; § 31-76k;
  • Paid vacation required: No
  • Earned vacation time considered wages: No
  • Payment of unused vacation time upon termination: Dictated by the employer’s policy or a collective bargaining agreement

There is no Connecticut vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is not considered wages. If an employer’s policy or collective bargaining agreement calls for the payment of accrued fringe benefits upon termination, terminated employees must be paid for accrued vacation time in accordance with the agreement or policy, but not less than the earned average rate for the accrual period pursuant to law.

This law is enforced by the Connecticut Department of Labor and through private civil actions. The statute of limitations for filing a wage complaint with the Department is two years. Penalties and remedies for failing to properly compensate an employee may include double the compensation due, interest, and attorneys’ fees and costs.

Delaware

  • State law: 19 Delaware Code Section 1103; § 1108; § 1109; § 1110; § 1112; § 1113
  • Paid vacation required: No
  • Earned vacation time considered wages: Dictated by the employment agreement or the employer’s policy
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Delaware vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Delaware, although employers who agree to provide vacation benefits must pay those benefits within 30 days of the date upon which such payments are required to be made. Employees must be paid their earned wages, as defined by an employment agreement or policy, by the next regularly scheduled payday upon separation from employment. Employers with more than three employees must provide their vacation policies in writing or through posted notices. The requirements set forth in this law cannot be set aside by agreement.

This law is enforced by the Delaware Department of Labor and through private civil actions. Penalties and remedies for failing to pay due vacation time may include liquidated damages, attorneys’ fees and costs, and civil penalties of between $1,000 and $5,000 for each violation.

Florida

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Florida vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Florida.

Georgia

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Georgia vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Georgia.

Hawaii

  • State law: Hawaii Revised Statutes Section 388-1; § 388-7
  • Paid vacation required: No
  • Earned vacation time considered wages: No
  • Payment of unused vacation time upon termination: No, unless mandated by express agreement or uniform custom

There is no Hawaii vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Hawaii. If an employer does give paid vacation, earned vacation time is not considered wages. Employers must provide their vacation policies in writing or through posted notices, and changes must similarly be provided before their effective date. Employers are not required to pay out unused vacation time upon separation from employment unless there is an express agreement or uniform custom to do so.

Idaho

There is no Idaho vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Idaho. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid by the next regularly scheduled payday or within 10 days, whichever is earlier, or within 48 hours if the employee makes a written request.

This law is enforced by the Idaho Department of Labor and through private civil actions. Penalties and remedies for failing to pay due vacation time may include a penalty in the amount of the employee’s same rate until paid in full or for 15 days, whichever is less (up to $750). Alternatively, employees may recover three times unpaid wages in a private civil action if this amount would be larger than the total amount of unpaid wages plus the penalty. They may also recover attorneys’ fees and costs. The statute of limitations for actions under this law is generally two years, or 12 months if wages have been paid and the employee is claiming additional wages for the same pay period.

Illinois

There is no Illinois vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered “final compensation” when payments are made to separated employees pursuant to a contract or agreement. Vacation time is earned as work is performed if the contract or policy provides for paid vacation earned by length of service. Unused earned vacation time must be paid in full at an employee’s final rate of pay at the time of separation, if possible, or no later than the next regularly scheduled payday. Collective bargaining agreements may alter these requirements. Employment contracts and policies may not provide for forfeiture of earned vacation time upon separation. However, employers may require employees to take earned vacation by a certain date or lose it, so long as they are given notice and a reasonable opportunity to take the vacation.

This law is enforced by the Illinois Department of Labor and through private civil actions. Penalties and remedies for failing to pay due vacation time may include a possible misdemeanor or felony conviction, an administrative fee of between $250 and $1,000, damages in the amount of five percent of the unpaid compensation for each month that compensation remains unpaid, and attorneys’ fees and costs.

Indiana

  • State law: Indiana Code Section 22-2-4-4; § 22-2-5-1; § 22-2-5-2; § 22-2-9-2
  • Paid vacation required: No
  • Earned vacation time considered wages: Considered deferred compensation in lieu of wages
  • Payment of unused vacation time upon termination: Yes, unless there is an agreement or published policy to the contrary

There is no Indiana vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered deferred compensation in lieu of wages and is earned as work is performed. Unused earned vacation time must be paid upon separation from employment unless there is an agreement or published policy to the contrary. Payment must generally be made by the next regular payday.

This law is enforced by the Indiana Department of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include a penalty of $1 for each day that wages remain unpaid 10 days after a demand (up to double the amount of wages due), liquidated damages in an amount equal to twice the amount of wages due, and attorneys’ fees and costs.

Iowa

There is no Iowa vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid by the next regular payday and in proportion to the fraction of the year worked if an agreement or employer policy established pro rata vacation accrued. Employers must provide their vacation policy in writing upon written request.

This law is enforced by the Iowa Division of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include civil monetary penalties up to $500 per pay period per violation, liquidated damages, and attorneys’ fees and costs.

Kansas

There is no Kansas vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Kansas, including an employer’s obligation to pay an employee’s unused earned vacation time upon separation from employment by the next regular payday. Employers may implement policies providing that unused earned vacation time may be lost at the end of the year instead of being carried over or paid out. Employers may also require that new employees wait until their first anniversary before earning vacation time and that current employees must reach their anniversary date before earning vacation time (and that there will be no payment if employment ends before the anniversary date). Employers must provide their vacation policies in writing or through posted notices upon request. The requirements set forth in this law cannot be set aside by agreement.

This law is enforced by the Kansas Department of Labor. Penalties and remedies for failing to pay due wages may include a penalty in the amount of one percent of the unpaid wages for each day (except Sundays and legal holidays) that the violation continues past the eighth day or 100 percent of the unpaid wages, whichever is less.

Kentucky

There is no Kentucky vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Kentucky. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid in full by the next normal pay period after separation from employment or 14 days after separation, whichever is later.

This law is enforced by the Commonwealth of Kentucky Labor Cabinet, Department of Workplace Standards. Penalties and remedies for failing to pay due wages may include civil penalties of $100 to $1,000 for each offense.

Louisiana

There is no Louisiana vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. If the employee is eligible for and has accrued the right to paid vacation in accordance with a stated vacation policy and has not yet taken or been compensated for this vacation time, unused earned vacation time must be paid no later than the next regular payday or 15 days after separation from employment, whichever is first. Collective bargaining agreements may alter these requirements. Employers cannot require employees to sign contracts by which they forfeit their wages if they are discharged or resign before completion. However, employers may be able to restrict payment of unused vacation upon separation in certain ways. Use-it-or-lose-it policies are not strictly prohibited in Louisiana so long as they comply with applicable laws.

This law is enforced through private civil actions. Penalties and remedies for failing to pay due wages may include a penalty in the amount of 90 days’ wages at the employee’s daily rate or full wages from the time of the employee’s demand until payment if the refusal to pay was not in good faith (whichever is less), interest, and attorneys’ fees.

Maine

Under Maine vacation time law, earned vacation time is considered wages when the terms of employment or the employer’s established practice include provisions for paid vacation. Employers not covered by the 2021 and 2023 paid leave laws (discussed below) must only pay unused earned vacation upon separation from employment if their policy or the employment agreement mandates it. If the employment agreement mandates payment of vacation upon separation from employment, it must be paid on the next payday or within two weeks of demand, whichever is sooner. If the business is sold, vacation must be paid within two weeks or the seller must agree with the buyer that the buyer will honor any paid vacation earned under the seller’s policy.

Starting January 1, 2021, employers with more than 10 employees for more than 120 days in a year are generally required to provide employees with at least one hour of paid leave for every 40 hours worked, up to 40 hours in one year. Accrual of leave begins at the start of employment, but the employer may limit employees from using this leave until the 120th day of employment. Employees may use or carry over up to 40 hours of this leave per year. However, employers may restrict employees from rolling over unused leave if leave is frontloaded at the beginning of the year. Employers may require employees to provide up to four weeks’ notice to use earned leave for any reason other than emergency, illness, or sudden necessity. Seasonal industries are exempt from this law. Employees covered under collective bargaining agreements as of January 1, 2021 are also excluded until the collective bargaining agreement expires.

Beginning on January 1, 2023, all unused paid vacation accrued pursuant to an employer’s vacation policy must be paid upon separation from employment unless the employee is employed by an employer with 10 or fewer employees or by a public employer, or unless the employment is governed by a collective bargaining agreement that addresses whether vacation will be paid upon separation.

This law is enforced by the Maine Department of Labor and through private civil actions. Penalties and remedies for failing to pay due vacation time may include penalties of between $100 and $500 for each violation, liquidated damages in an amount equal to twice unpaid wages, interest, and attorneys’ fees and costs.

Maryland

There is no Maryland vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation must be paid upon separation from employment on or before the day on which the employee would have been paid. However, an employer does not need to pay accrued leave if the employer has a written policy limiting such compensation, the employee was duly notified, and the employee is not entitled to the payment under the terms of the written policy. Employers must give employees notice of leave benefits at the time of hiring.

This law is enforced by the Maryland Department of Labor, Division of Labor and Industry and through private civil actions. Penalties and remedies for failing to pay due vacation time may include a possible misdemeanor conviction, a fine of up to $1,000, three times the amount of unpaid wages, and attorneys’ fees and costs.

Massachusetts

There is no Massachusetts vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages and is generally earned as work is performed. Unused earned vacation time must be paid upon separation from employment by the next regular payday or the following Saturday. If discharged, employees must generally be paid on the day of discharge. Employment agreements cannot provide for the forfeiture of earned vacation time, but employers may cap the amount of vacation that an employee can earn or establish a use-it-or-lose-it policy, so long as the employee has adequate prior notice of the policy and a reasonable opportunity to use their vacation. Employers may require new employees to work a certain period of time before earning vacation time. Employers are also free to impose certain scheduling requirements and limit the time of year when an employee may use their vacation, based on the needs of the business.

This law is enforced by the Massachusetts Attorney General’s Fair Labor Division and through private civil actions. Penalties and remedies for failing to pay due vacation time may include a fine up to $25,000 for a first offense and $50,000 for a second offense, possible imprisonment, liquidated damages of three times lost wages and other benefits, and attorneys’ fees and costs. The statute of limitations for private actions under this law is three years.

Michigan

There is no Michigan vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is not considered wages. Employers are bound to pay employees vacation in accordance with the employment agreement or their written policy. Unused earned vacation time due at termination according to an employment agreement or a written policy must be paid unless an employee voluntarily agrees to give up such payment in a written contract or signed statement. Vacation due at termination must be paid on the regularly scheduled payday for the period in which termination occurred, unless otherwise provided in a written agreement or policy.

This law is enforced by the Michigan Department of Labor and Economic Opportunity and through private civil actions. The deadline to file a written complaint with the department is one year. Penalties and remedies for failing to pay due vacation time may include a misdemeanor conviction, a fine of up to $1,000, imprisonment, a 10 percent penalty for every day that payment remains due after notice of the complaint, exemplary damages of up to twice the amount due, and attorneys’ fees and costs.

Minnesota

There is no Minnesota vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Minnesota. If unused earned vacation time is to be paid upon separation from employment according to the employment agreement or the employer’s policy, it must be paid immediately upon demand, or generally on the next regularly scheduled payday if the employee quits or resigns.

This law is enforced by the Minnesota Department of Labor and Industry and the Minnesota Attorney General, and through private civil actions. Penalties and remedies for failing to provide due vacation pay may include a possible misdemeanor conviction, one day of average wages for each day that payment is late (up to 15 days), compensatory damages, injunctive relief, and attorneys’ fees and costs.

Mississippi

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Mississippi vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Mississippi.

Missouri

  • State law: Missouri Revised Statutes Section 290.110
  • Paid vacation required: No
  • Earned vacation time considered wages: No, unless an employment agreement provides otherwise
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Missouri vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time generally is not considered wages unless an employment agreement provides otherwise. Whether an employer must pay unused earned vacation time upon separation from employment is dictated by the employment agreement, including customs and usages that become part of the contract by implication.

This law is enforced through private civil actions. Penalties and remedies for a failure to pay vacation time upon discharge if vacation time is considered wages under the employment agreement may include a penalty in the amount of the employee’s same rate from the time of discharge to the time of payment, up to 60 days.

Montana

There is no Montana vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation time must be paid upon separation from employment by the next regular payday or within 15 days, whichever is first. When an employee is separated for cause or laid off, unpaid wages, including unused earned vacation, are due immediately unless a written policy provides otherwise. Once vacation time has been earned according to the terms of an employment contract, it cannot be divested. Montana does not permit use-it-or-lose-it policies, but employers may place caps on accumulated vacation time.

This law is enforced by the Montana Department of Labor & Industry and through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction, a penalty of up to 110 percent of the unpaid wages, and attorneys’ fees and costs.

Nebraska

There is no Nebraska vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation time must be paid upon the next regular payday or within two weeks of the date of termination, whichever is first. Employment contracts or policies cannot deny employees payment for unused earned vacation time upon termination.

This law is enforced by the Nebraska Department of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include penalties equal to the unpaid wages or, if the nonpayment was willful, two times the amount of unpaid wages, administrative penalties up to $500 for the first violation and $5,000 for a subsequent violation, and attorneys’ fees and costs.

Nevada

In the case of employers not covered by the 2020 paid leave law (discussed below), vacation time benefits and obligations are largely determined by employment agreements and employer policies in Nevada. If mandated by the employment agreement or the employer’s policy, unused earned vacation time must be paid within seven days after the employee quits or resigns, or the day when the employee would have regularly been paid, whichever is first.

Starting January 1, 2020, private employers with 50 or more employees in Nevada are generally required to provide employees with at least 0.01923 hours of paid leave for every hour of work. Employers may limit employees to using or carrying over a maximum of 40 hours of paid leave per year. Employers may also limit employees from using this leave until the 90th day of employment. Employees must receive an accounting of their available paid leave every payday. Employers may, but are not required to, compensate employees for unused earned paid leave upon separation from employment. Some collective bargaining agreements and existing employment agreements that provide at least the minimum paid leave as required by law are exempt from this law. This law may not apply to employers in their first two years of operations, as well as temporary, seasonal, or on-call workers.

This law is enforced by the Nevada Office of the Labor Commissioner and through private civil actions. Penalties for violations of this law may include a possible misdemeanor conviction and a fine of up to $5,000 per violation. Remedies for an employer’s failure to pay compensation on time may include compensation at the employee’s same rate for each day that payment remains due (up to 30 days), and attorneys’ fees.

New Hampshire

There is no New Hampshire vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Vacation time benefits and obligations, including an employer’s obligation to pay earned vacation time upon separation from employment, are largely determined by employment agreements and employer policies in New Hampshire. If required by the employment agreement or policy, vacation time must be paid within 72 hours of separation from employment or by the next regular payday if the employee quits with less than one pay period’s notice, the employee’s work is suspended due to a labor dispute, or the employee is laid off. Employers must provide their vacation policies in writing or through posted notices. Employers may change their policies if they give employees written notice prior to the effective date, and vacation days earned before the change do not lapse after the change.

This law is enforced by the New Hampshire Department of Labor and through private civil actions. Penalties and remedies for unpaid wages include liquidated damages in the amount of 10 percent of unpaid wages for every day (except Sundays or legal holidays) that the wages remained due or in an amount equal to the unpaid wages, whichever is smaller, if the employer willfully failed to pay the employee as required. Employers may also face a misdemeanor conviction for a willful violation. The statute of limitations for a wage claim under this law is three years.

New Jersey

There is no New Jersey vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in New Jersey.

An employer’s own rules for vacation time may be enforced by the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance and through private civil actions. Penalties and remedies for failing to pay due benefits arising out of an employment contract include a fee of between 10 and 25 percent of the amount due and interest.

New Mexico

There is no New Mexico vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation time must be paid upon separation from employment. Unused vacation time is generally a “fixed and definite” amount that must be paid within five days of discharge. Wages and compensation are due by the next payday for employees who quit.

This law is enforced by the Labor Relations Division of the New Mexico Department of Workforce Solutions and through private civil actions. Penalties and remedies for failing to pay due wages and compensation may include a possible misdemeanor conviction, a fine, and pay at the employee’s normal rate for every day that wages remain due (up to 60 days).

New York

There is no New York vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, vacation time is considered wages. Unused earned vacation time must be paid upon separation from employment if there is no written forfeiture policy. Employers must provide their vacation policies in writing or through posted notices.

This law is enforced by the Division of Labor Standards of the New York Department of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction, liquidated damages, civil penalties of $500 for each violation, liquidated damages, and attorneys’ fees and costs. The statute of limitations under this law is six years.

North Carolina

There is no North Carolina vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, vacation time is considered wages. Employers must provide their vacation policies in writing or through posted notices. Vacation policies must address how and when vacation is earned, whether or not vacation time may be carried forward into the next year and in what amount, when vacation time must be taken, when and if vacation pay may be paid in lieu of time off, and under which conditions vacation pay will be forfeited upon separation from employment. Employees who are not notified of policies or practices that result in the loss or forfeiture of vacation time or pay will not be subject to such loss. Unused earned vacation time must be paid upon separation from employment on or before the next regular payday if an employee has not been notified of a written forfeiture policy.

This law is enforced by the North Carolina Department of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include liquidated damages up to an amount equal to the amount found due, interest, and attorneys’ fees and costs. The statute of limitations for actions under this law is two years.

North Dakota

There is no North Dakota vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, vacation time is considered wages. Unused earned vacation time must be paid upon separation from employment at the employee’s regular rate of pay by the next regular payday. Employment contracts or policies may not provide for the forfeiture of earned vacation time upon separation, but they may employ a use-it-or-lose-it system as long as the employee has notice of the policy and a reasonable opportunity to take a vacation. However, if separation from employment was voluntary, a private employer may withhold payment for earned vacation if the employee received written notice of the limitation at the time of hiring, the employee has been employed for less than one year, and the employee gave less than five days’ notice. Payment for vacation may also be withheld upon separation if the vacation was awarded but not yet earned, and the employee received written notice of the limitation before the vacation was awarded.

This law is enforced by the North Dakota Department of Labor and Human Rights and through private civil actions. Penalties and remedies for failing to pay due wages may include pay for every day that the wages remain due (up to 30 days), a multiple of the employee’s unpaid wages if the employer has been found liable for at least two previous wage claims in the last year, and interest.

Ohio

  • State law: Ohio Revised Code Section 4113.15; § 4113.99
  • Paid vacation required: No
  • Earned vacation time considered wages: Considered a deferred payment of an earned benefit
  • Payment of unused vacation time upon termination: Yes, if there is no written forfeiture policy

There is no Ohio vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, vacation time is considered deferred payment of an earned benefit, similar to wages. Unused earned vacation time must be paid upon separation from employment unless there is a written policy that unused vacation time will be forfeited.

This law is enforced through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction and liquidated damages in an amount equal to six percent of wages remaining unpaid and not in contest or dispute or $200, whichever is greater.

Oklahoma

There is no Oklahoma vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages if agreed upon or provided in an established policy. Employers may condition vacation time upon a certain level of job performance or other lawful criteria. Unused earned vacation time owed must be paid upon separation from employment at the next regular payday. Collective bargaining agreements may alter these requirements.

This law is enforced by the Wage and Hour Unit of the Oklahoma Department of Labor and through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction, liquidated damages in the amount of two percent of the unpaid wages for each day that the wages remain unpaid if willfully withheld or in an amount equal to the unpaid wages, whichever is smaller, and attorneys’ fees and costs.

Oregon

There is no Oregon vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Whether unused earned vacation time must be paid upon separation from employment is dictated by the employment agreement or the employer’s policy. Unused earned vacation time owed upon separation from employment must be paid by the end of the first business day after discharge or termination, immediately if an employee without a contract for a definite period quit by giving at least 48 hours’ notice, or within five days or by the next regularly scheduled payday if the employee quits without notice. Collective bargaining agreements may alter these requirements.

This law is enforced by the Oregon Bureau of Labor & Industries. Penalties and remedies for failing to pay wages upon separation may include a penalty in the amount of the employee’s normal hourly rate for eight hours each day between the time that wages are due and the time that due wages are paid or an action is commenced (up to 30 days) if the failure was willful (subject to some exceptions), attorneys' fees and costs, and civil penalties up to $1,000.

Pennsylvania

There is no Pennsylvania vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. If it is owed under an employment agreement or policy, unused earned vacation time must be paid within 10 days after such payment is due or within 60 days of the date that a claim is filed when no other time is specified. Employers must notify employees of their vacation policies at the time of hiring and of any change in a policy before the change takes effect. Notification by conspicuous posting or in a collective bargaining agreement may satisfy this requirement. The requirements set forth in this law cannot be set aside by agreement.

This law is enforced by the Pennsylvania Department of Labor & Industry and through private civil actions. Penalties and remedies for failing to pay due wages may include a penalty in the amount of 10 percent of the claim found due, attorneys' fees, liquidated damages in an amount equal to 25 percent of the unpaid wages or $500, whichever is greater, and a possible summary offense conviction subject to a fine up to $300 with the possibility of imprisonment. The statute of limitations for actions under this law is three years.

Rhode Island

There is no Rhode Island vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages after one year of employment. Unused earned vacation time must be paid in full or on a prorated basis upon separation from employment on the next regular payday if an employee has completed at least one year of work. Vacation must be paid within 24 hours if the separation is due to liquidating, merging, or disposing of the business, or removing it out of state. The requirements set forth in this law cannot be set aside by agreement.

This law is enforced by the Rhode Island Department of Labor and Training, by the attorney general, and through private civil actions. Penalties for failing to pay due vacation time may include a possible misdemeanor conviction subject to a fine of at least $400 per offense per day, possible imprisonment, and revocation of the employer’s business license. Penalties may also include administrative penalties of between 15 and 25 percent of the amount of back wages ordered paid. For subsequent violations within three years, the penalty may increase to between 25 and 50 percent. Additional penalties and remedies for a violation may include a civil penalty or liquidated damages in the amount of up to two times the total wages and benefits found due, compensatory damages, equitable relief, interest, and attorneys’ fees and costs. The statute of limitations for claims under this law is three years.

South Carolina

There is no South Carolina vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. If required by the employment agreement, unused earned vacation time must be paid upon separation from employment within 48 hours or by the next regular payday, and within 30 days. Employers must provide their vacation policies in writing or through posted notices and must make changes in writing at least seven days before they take effect. The requirements set forth in this law cannot be set aside by agreement. This law does not apply to employers of domestic labor in private homes and employers with fewer than five employees at all times in the preceding year.

This law is enforced by the South Carolina Department of Labor, Licensing and Regulation and through private civil actions. Penalties and remedies for violations may include civil penalties of up to $100 per violation, three times the full amount of unpaid wages, and attorneys’ fees and costs. The statute of limitations for private civil actions to recover wages is three years.

South Dakota

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no South Dakota vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in South Dakota.

Tennessee

There is no Tennessee vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, unused earned vacation time must be paid upon separation from employment only if the employer’s policy or a labor agreement specifically mandates it. If required, unused earned vacation time must be paid upon separation from employment by the next regular payday or within 21 days, whichever is later. This law only applies to private employers with five or more employees. Employers are not required to establish written vacation pay policies.

This law is enforced by the Tennessee Department of Labor & Workforce Development. Penalties and remedies for failing to pay due vacation time may include a possible misdemeanor conviction, fines of between $100 and $500, and civil penalties of between $500 and $1,000 for a willful violation.

Texas

There is no Texas vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation time must be paid upon separation from employment only if a written employment agreement or employer’s written policy specifically mandates it. If required, unused earned vacation time must be paid no later than six days after discharge or by the next regularly scheduled payday after an employee leaves other than by discharge. The sale of the employer’s business may be a separation from employment for purposes of paying vacation time.

This law is enforced by the Texas Workforce Commission. Penalties and remedies for failing to pay due wages may include a possible felony conviction if an employer hires or continues to employ an employee while intending to avoid payment and fails to pay, injunctive relief, and administrative penalties equivalent to the unpaid wages or $1,000, whichever is smaller. The statute of limitations to file a wage claim with the Commission is 180 days.

Utah

There is no Utah vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unused earned vacation due under an employment agreement or policy must be paid upon separation from employment within 24 hours or by the next regular payday if the employee does not have a written contract for a definite period of time and resigns or work ceases because of an industrial dispute.

This law is enforced by the Wage Claim Unit of the Utah Labor Commission and through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction, a penalty of up to five percent of the unpaid wages to be assessed daily (up to 20 days), actual damages, compensation at the employee’s same rate for each day that due wages remain unpaid after written demand (up to 60 days), and attorneys’ fees and costs. The statute of limitations for claims filed with the Commission is one year.

Vermont

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Vermont vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Vermont.

Virginia

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Virginia vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Virginia.

Washington

  • State law: N/A
  • Paid vacation required: No
  • Earned vacation time considered wages: N/A
  • Payment of unused vacation time upon termination: Dictated by the employment agreement or the employer’s policy

There is no Washington vacation time law requiring employers to give employees paid vacation time. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Washington.

Washington, D.C.

There is no Washington, D.C. vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Unless a collective bargaining agreement or employment agreement provides otherwise, unused earned vacation time must generally be paid upon discharge by the next work day or when an employee quits, within seven days or the next regular payday, whichever is earlier.

This law is enforced by the mayor and the attorney general, who may pursue injunctive, compensatory, or other authorized relief. Penalties may include administrative penalties of $50 per affected person per day for the first offense and $100 per person per day for any subsequent offense, as well as fines up to $2,500 per affected employee for the first offense and up to $5,000 per affected employee for any subsequent offense. For willful violations, these fines increase to $5,000 and $10,000, respectively, with the possibility of imprisonment. Employees may also pursue private civil actions for remedies including back wages, liquidated damages, statutory penalties, attorneys’ fees and costs, and other appropriate relief.

West Virginia

There is no West Virginia vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages so long as they are capable of calculation and payable directly to the employee, and nothing in a valid employment agreement provides otherwise. Nothing prevents an employer from including in their employment agreement that unused earned vacation time will not be paid upon separation so long as that term is express and specific. Unused earned vacation time owed must be paid upon separation from employment on or before the next regular payday or according to the terms of the employment agreement if the agreement provides that vacation time will be paid at a future date or upon additional conditions. Employers must provide employees with their vacation policies in writing or through posted notices. The requirements set forth in this law cannot be set aside by agreement.

This law is enforced by the West Virginia Division of Labor and through private civil actions. Penalties and remedies for failing to pay due wages or benefits may include liquidated damages of twice the amount of unpaid wages in addition to the full amount of unpaid wages and attorneys’ fees and costs.

Wisconsin

There is no Wisconsin vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages. Vacation time benefits and obligations are largely determined by employment agreements and employer policies in Wisconsin. Generally, unused earned vacation time must be paid if a written policy provides for vacation and does not include a forfeiture provision. Unused earned vacation time owed must be paid upon separation from employment by the date when the employee would have otherwise been paid, or within 24 hours if separation occurs because of the employer merging, liquidating, or otherwise disposing of the business, ceasing business operations, or relocating.

This law is enforced by the Wisconsin Department of Workforce Development and through private civil actions. Penalties and remedies for failing to pay due wages may include a fine up to $500, possible imprisonment, increased wages of up to double the amount unpaid, and attorneys’ fees and costs. The statute of limitations to file a complaint with the Department is two years.

Wyoming

There is no Wyoming vacation time law requiring employers to give employees paid vacation time. If an employer does give paid vacation, earned vacation time is considered wages unless an employer’s written policy provides that accrued vacation is forfeited upon termination, and the employee has acknowledged this policy in writing. Unused earned vacation time must be paid according to the terms of the agreement and by the next regularly scheduled payday or as specified in a collective bargaining agreement upon separation from employment. An employment agreement may provide that unused vacation time may be lost at the end of the year, rather than being carried over or paid, as long as employees have a full opportunity to use those days. Employment agreements may also provide that vacation time is earned only upon an employee’s anniversary and cannot be prorated. Finally, an employment agreement may mandate a waiting period, such that an employee will not earn any vacation time until their first anniversary.

This law is enforced by the Wyoming Department of Workforce Services and through private civil actions. Penalties and remedies for failing to pay due wages may include a possible misdemeanor conviction, a fine of between $500 and $750 per offense, 18 percent interest, and attorneys’ fees and costs.

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