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Does My Boss Have to Pay Out My Accrued PTO?


Paid time off (PTO), also known as personal time off, gives employees an opportunity to take days off while still earning their pay. Although most employees save their PTO days for long vacations, there are many who accrued more PTO than they use, resulting in a surplus.

If you have accrued a surplus amount of PTO and plan on leaving your job, you might be wondering if your employer must payout any of your unused PTO. Such a payment would be quite substantial, especially if you have months worth remaining.

However, Texas employment laws state that employers are not required to pay out accrued PTO. In fact, employers do not have to provide PTO to employees, according to federal laws.

Fortunately, many employers address such matters in their employee handbook. So, if an employer promises employees to payout the remaining balance of their PTO, they are legally obligated to do so--despite the state and federal laws.

Whether you voluntary leave or get terminated, you must check your employment contract to see if there are any assurances regarding your unused PTO. Essentially, Texas public and private employers who decide to give their employees PTO must adhere to their own workplace policies.

If your employer refuses to payout your remaining PTO despite the stipulations of your employment contract, contact Shellist Lazarz Slobin today at (713) 352-3433 to schedule a confidential case evaluation.

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