by Christopher B. Kaczmarek, Littler
Building a compliant and competitive vacation and paid time off (PTO) program is essential for HR teams focused on talent attraction, retention, and employee wellbeing. Although federal and most state laws do not require employers to offer vacation, organisations that choose to provide it must follow jurisdiction‑specific rules on accrual caps, carryover, and use‑it‑or‑lose‑it policies. Understanding these requirements is key to reducing compliance risk and ensuring policies remain fair and legally sound.
Our state‑by‑state chart for vacation and paid time off benefits outlines which jurisdictions permit accrual limits, where use‑it‑or‑lose‑it policies are allowed, and when employers must provide clear handbook statements or ensure payout at termination under related wage‑payment laws.
HR leaders can confidently design or refine their vacation and PTO programs to align with legal requirements while supporting a positive employee experience.
Whether managing a multi‑state workforce or updating existing policies, this tool helps organisations stay compliant, competitive, and in step with evolving employee expectations.

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For full access to Vacation and paid time off benefits by state, sign up to a HR and Compliance Center subscription today.
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