No, you don’t have to pay out vacation at the end of the year.
In most states that allow “use it or use it policies,” you can “expire” accrued PTO days after a time limit stated in the company’s PTO policy. In states that forbid “use it or lose it” policies, the PTO has to roll over into the next year unless paid out to the employee at the end of the current year.Updated January 24, 2018
This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business.