Work · Vacation Payout
Vacation Payout at Termination in New York
Whether your employer must pay out unused vacation when you leave New York, the timing, the cap-versus-forfeiture line, and how sick leave differs. Cited to the statute.
How vacation payout works in New York
Whether a payout is owed, the timing, and the difference between a cap and a forfeiture.
| How it works | What it means |
|---|---|
| Default: payable | Absent a written policy to the contrary, accrued vacation is generally payable at separation. Labor Law §198-c defines benefits or wage supplements to include vacation, separation, or holiday pay, which an employer must pay when due. |
| A written forfeiture policy pivots it off | New York lets an employer lawfully forfeit unused vacation or decline payout if the policy is in writing and clearly communicated before the vacation is earned. |
| 30-day payment rule | When a payout is owed, §198-c requires it within 30 days after it is due, and failure can carry penalties. |
| Exceptions and limits | What it means |
|---|---|
| Vacation versus sick | Statutory paid sick leave is not paid out at separation. The pivot rule is about vacation or PTO. |
| Probationary periods | A written policy may lawfully deny accrual or payout during a probationary period if it is disclosed in advance. |
| Union contracts | A collective-bargaining agreement governs its own vacation-payout terms. |
What you can do right now
Concrete, neutral steps to claim unused vacation when you leave New York. This is legal information, not legal advice.
- Check for a written forfeiture policy
In New York, the answer turns on whether your employer has a clear written policy that forfeits vacation or declines payout. If there is none, your accrued vacation is generally payable.
- Confirm the policy predates your earning
A forfeiture policy only pivots off the default if it was in writing and communicated before you earned the time. A policy sprung after the fact is weaker.
- Expect payment within 30 days
When a payout is owed, §198-c requires it within 30 days after it is due.
- File a complaint if it is withheld
If a payout is owed and not paid, you can file a claim with the New York State Department of Labor.
If earned or promised vacation is withheld, a state labor agency can take your wage claim. This resource points to the right office.
→ New York State Department of Labor — Unpaid WagesThis is general legal information, not legal advice. Policy wording, probationary periods, and sick-leave rules can change the answer, so confirm your situation against the statute or with a licensed attorney.
What New York workers get wrong about vacation payout
New York is often oversimplified as a "must pay out" state, but the accurate rule is a written-policy pivot. The default is that accrued vacation is payable when you leave: Labor Law §198-c treats vacation, separation, and holiday pay as benefits or wage supplements that an employer must pay when due, within 30 days. But New York also lets an employer lawfully forfeit unused vacation, or decline to pay it out, if it has a written policy that says so clearly and that was communicated before the vacation was earned. So the whole answer hinges on whether such a written forfeiture policy exists. No policy, or a vague one, and your accrued vacation is generally payable; a clear, advance written policy, and it may be forfeited. That advance-notice point matters, because a policy an employer springs after you have already earned the time is on weaker footing. Statutory sick leave is not paid out at separation, and a lawful probationary-period policy can deny accrual if disclosed. When a payout is owed and withheld, a claim with the State Department of Labor is the remedy.
Common questions
Does my employer have to pay out unused vacation in New York?
By default, yes, unless the employer has a written policy, communicated before you earned the time, that clearly forfeits vacation or declines payout. Vacation pay is a wage supplement owed within 30 days when due.
Can a New York employer have a use-it-or-lose-it policy?
Yes, if it is in writing and clearly communicated before the vacation is earned. Such a policy can lawfully forfeit unused vacation or decline a payout.
How fast must New York pay out owed vacation?
Within 30 days after it is due, under Labor Law §198-c. Failing to pay a wage supplement when due can carry penalties.
Is New York a "must pay out" state for vacation?
Not flatly. The default is payable, but a clear written forfeiture policy communicated in advance can pivot the answer to no. It depends on whether that policy exists.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.