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Even though Washington doesn't have a law requiring PTO payout at termination, employers might be responsible for paying out unused PTO to an employee who leaves the company. If there is a company policy or employment contract that requires it, an employer is required to pay unused PTO to a separating employee.
If your vacation policy states that upon separation, accrued vacation is paid to the employee, by Indiana Labor Laws, it must be paid upon separation. If your policy states that upon separation, accrued vacation is forfeited, the employee, by Indiana Labor Laws, will not be paid.
Employers are not required to allow employees to carry over unused leave into the following year. The state of Indiana has no statute governing this policy, so employers are free to run a ?Use-It-or-Lose-It? vacation policy.
Can I Use PTO During My Two Weeks Notice? It depends ? but this is usually frowned upon by most employers. Some employers may even have policies saying ?no? to requesting PTO after you've put in your notice. Without a policy like this, it could be easy for employees to abuse the system.
There are 20 U.S. states that require companies to pay out the value of an employee's unused earned paid time off (vacation time, sick leave, or both) at employment separation: California, Colorado, District of Columbia (Washington, D.C.), Illinois, Indiana, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Montana ...
If your vacation policy states that upon separation, accrued vacation is paid to the employee, by Indiana Labor Laws, it must be paid upon separation. If your policy states that upon separation, accrued vacation is forfeited, the employee, by Indiana Labor Laws, will not be paid.