Do I have to pay an employee who is leaving for unused sick and/or vacation time?
All accrued but unused vacation must be paid out at the termination of the employment relationship, at the final rate of pay, even if the employee was not yet eligible to take the vacation time.
PTO is considered wages, and you must pay out the entire amount of accrued but unused PTO when the employment relationship is terminated. If you combine sick leave and vacation into one PTO policy, PTO must be paid out upon termination.
Mandatory paid sick leave does not need to be paid out upon termination of employment. However, unlike other leave laws, previously accrued and unused paid sick days must be
HRCalifornia Resources
All resources require membership. For full access to every form, checklist and tool on HRCalifornia — plus the HRCalifornia Helpline for live expert support — become a member.