Employee Leaves Employment and Reinstatement

Unlike unused, accrued vacation — which is treated like wages — mandatory PSL does not need to be paid out at the end of employment (i.e., no “cash-out” of PSL at termination, resignation, retirement, or other separation from employment).¹

Sick leave, including mandatory PSL, is not considered a form of wages.

Exclamation content: If you combine mandatory PSL and vacation into a paid time off (PTO) policy, you will have to follow the rules relating to vacation and PTO, including paying out accrued but unused PTO, upon termination. For more information, see Paid Time Off.

Unlike other leave laws, previously accrued and unused paid sick days must be reinstated²