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.
Heads up: This article provides general information but it’s not legal advice. Please consult an HR expert or employment attorney for specific guidance on your business and situation.Updated January 24, 2018