Ask The Expert: Vacation Time
February, 2021

We have employees who are leaving and haven’t taken any time off due to working from home during COVID. We used to pay out vacation pay and would like to change the policy. Can we do that? We are in New York.

Expert Answer:
Federal law does not require employers to provide paid vacation time to workers or to pay out unused vacation at the end of employment.

In New York State PTO must be paid out upon termination UNLESS the employer has a written policy stating otherwise – your policy should state that any unused time off is forfeited at termination.

Some companies have a policy that employees forfeit all unused PTO or vacation time at termination. In which case, employees intending to leave will use up their PTO prior to submitting resignation.