Does my US employer have to pay out unused vacation?
It depends on your state. There is no federal requirement. California, Massachusetts, Illinois, and several others treat accrued vacation as earned wages that must be paid out at separation and prohibit forfeiture. Texas, Florida, Washington, and many others require payout only if the employer's own policy or a contract promises it.
Are use-it-or-lose-it vacation policies legal?
It varies by state. States that treat vacation as earned wages — such as California — generally prohibit policies that forfeit already-earned vacation, though they may allow reasonable accrual caps. Other states permit use-it-or-lose-it policies as long as they are clearly communicated. Always check your state law and your handbook.
Is PTO the same as vacation for payout purposes?
Often, combined paid-time-off (PTO) banks that include vacation are treated the same as vacation in states that require payout, because the time is considered earned wages. Sick-only leave is usually treated differently and is less commonly subject to payout. The classification in your policy matters.
What can I do if my employer refuses to pay out earned vacation?
In states that treat vacation as wages, unpaid accrued vacation is a wage claim. You can file a complaint with your state labor agency or bring a private action, and some states add penalties and attorneys' fees. Document your accrued balance and your employer's written policy to support the claim.