Payout required by law

Louisiana must pay out your unused PTO

Last updated July 31, 2026 · sourced from the Louisiana labour department and the US Department of Labor

Does Louisiana require PTO payout?

Yes. Louisiana treats accrued, unused PTO as earned wages, so your employer must pay it out when you leave, whatever the company policy says. The controlling authority is La. R.S. 23:631.

Payout at separation

Payout required by law

If you resign

Next regular payday or within 15 days of separation, whichever is earlier

If you are fired

Next regular payday or within 15 days of separation, whichever is earlier

How Louisiana treats accrued PTO

Required IF the employer has any vacation policy (written or verbal). If no vacation policy exists, there is nothing to pay out. Once a vacation policy exists, accrued vacation becomes earned wages and must be paid at separation. The law treats vacation pay as wages once earned under the employer's policy. Employers may maintain use-it-or-lose-it policies regarding annual use but must pay out accrued time at separation. Penalties for late payment can include up to 90 days of additional wages.

Authority: La. R.S. 23:631

Late payment penalty in Louisiana

Employer may be liable for up to 90 days of wages as penalty, plus attorney fees.

Statute: La. Rev. Stat. § 23:631

Your other Louisiana entitlements

PTO payout is one line on your final payslip. These are the other Louisiana rules that change what that payslip should total.

Paid sick leave: Louisiana has no state paid sick leave mandate, so sick time is whatever your employer offers, and it is separate from the vacation balance discussed above. Louisiana has no state paid sick leave law. Check your employer's policy. Check your sick leave balance .
Minimum wage: The Louisiana minimum wage is $7.25/hr , which matches the federal floor (effective July 24, 2009). Your PTO payout is paid at your own rate of pay, not the minimum, but the minimum is the floor below which no hour may be paid. Louisiana minimum wage details .
Overtime: Louisiana pays overtime at 1.5x after 40 hours in a week . Unpaid overtime is often owed alongside unpaid PTO, so it is worth checking both before you sign anything. Calculate your overtime .

Work out what Louisiana owes you

Enter your salary and unused days to get the gross figure, plus an estimate after withholding, in a format you can paste into an email to HR.

Open the PTO payout calculator

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Frequently Asked Questions

Does Louisiana require employers to pay out unused PTO?

Yes. Louisiana treats accrued, unused PTO as earned wages, so your employer must pay it out when you leave, whatever the company policy says. The controlling authority is La. R.S. 23:631.

When must my final paycheck arrive in Louisiana if I quit?

If you resign in Louisiana, the deadline is: Next regular payday or within 15 days of separation, whichever is earlier. If you are fired or laid off instead, the deadline is: Next regular payday or within 15 days of separation, whichever is earlier. Any PTO your employer owes you should be included in that payment rather than sent separately later.

What happens if my Louisiana employer pays late?

Louisiana attaches a penalty to late final wages: Employer may be liable for up to 90 days of wages as penalty, plus attorney fees. That penalty is separate from the wages themselves, so a late payment can end up costing an employer far more than the original amount. Keep a record of your separation date and the date you were actually paid.

Can Louisiana employers use "use it or lose it" PTO policies?

Not to strip time you have already earned. Because Louisiana treats accrued PTO as wages, an employer may cap how much you accrue going forward but cannot delete a balance you already hold. A policy that forfeits earned time at separation is unenforceable.

Is a PTO payout taxed differently in Louisiana?

No. A PTO payout is ordinary wages, so it is subject to federal income tax withholding, Social Security at 6.2%, Medicare at 1.45%, and any Louisiana state income tax. Employers often withhold federal tax at the 22% supplemental wage rate on a lump sum, which can make the payout look more heavily taxed than your normal cheque; it evens out when you file.

PTO payout in other states

Alabama Connecticut Idaho Maine Missouri New Mexico Oregon Texas