Vacation Pay Upon Resignation: What Are Your Rights in the U.S.?

In the United States, there is no federal law mandating payment for unused vacation time upon resignation. Entitlement depends entirely on state law and the employer's written policy.

• States requiring payout: Some states (e.g., California, Massachusetts, Illinois) treat accrued vacation as earned wages that must be paid out.
• States with no requirement: Others allow employers to set their own rules, including "use-it-or-lose-it" policies.
• Company policy matters: Even in states without mandates, many employers voluntarily pay out unused vacation per their handbook or contract.

Always review your state's labor department guidelines and your employer's specific policy to know your rights.