Can an employer take away earned PTO?

Question

Zippia Team · Accepted Answer

Yes, an employer can take away earned PTO. Most companies require their employees to make decisions regarding accrued PTO by the end of the calendar year, and in some cases, if the employee does not take action, the company may take away their earned PTO.

In general, an employee can do the following with their accrued paid time off:

Use the time
Cash it out
Roll it over
Give it up

Some employers have to pay out PTO, while others do not; this depends on the state in which the company operates.

Employee termination is another time some employers can take away PTO. In many states, companies are not required to pay out PTO after an employee leaves a job or is terminated. However, there are some states that require companies to pay out an employee's PTO in these scenarios.