Are we, as a California company with an unlimited vacation policy, required to pay out a certain amount PTO when an employee leaves?

The short answer is no. There is no accrual of vacation under an unlimited vacation policy, so the employer avoids any obligation to pay any accruals upon termination. However, the rules for paying out PTO vary widely among different states, so you should double-check the rules for your state. To do so, Google unlimited vacation policy and your state’s name.

Helpful links:

Unlimited Vacation Policies - Law360

Limits of Unlimited Vacaton - SHRM

Dawn Nott
Director, HR
Posted on Aug. 13, 2015, 2:09 a.m.
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