Vacation Payout Calculator

Fact Check: Vacation Payout Calculator

Verified
16
Partial
0
Issue
0
Outdated
0
Unverifiable
2
Verified May 24, 2026Methodology

Summary

All 17 verifiable claims verified against Tier-1 sources: the five mandatory-payout state statutes (California Labor Code §§ 201/202/203/227.3, Colorado CRS § 8-4-101, Massachusetts G.L. c.149 §§ 148/150, Nebraska Neb. Rev. Stat. §§ 48-1229/48-1231 + HFWA 2025, Montana MCA § 39-3-205), the controlling Colorado Supreme Court decision Nieto v. Clark's Market (2021), and each state's Department of Labor / Labor Standards guidance. The five named state entries, the use-it-or-lose-it forfeiture flags, and the late-payment penalty flags all match the underlying statutes and the leading case law. The generic "follows-policy" and "no-statute" catch-all buckets are intentionally collapsed for ~15 and ~30 states respectively, with the limitation documented in "What's not modeled."

Claims — Modeled-data thresholds

7 claims

California — earned vacation is wages; mandatory payout at separation; use-it-or-lose-it banned

Appears in

Tool's data layer — California mandatory = true, useItOrLoseItBanned = true, hasWaitingTimePenalty = true

Source (primary)
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=227.3
Source (secondary)
https://www.dir.ca.gov/dlse/FAQ_Vacation.htm
Verified
May 24, 2026
Notes

§ 227.3 is the controlling statute; the DIR Vacation FAQ confirms the wage treatment, the bar on use-it-or-lose-it forfeiture (accrual caps allowed; forfeiture banned), and the § 203 cascade for late payment.

Colorado — earned vacation is wages; mandatory payout; use-it-or-lose-it banned (per Nieto v. Clark's Market 2021)

Appears in

Tool's data layer — Colorado mandatory = true, useItOrLoseItBanned = true

Source (primary)

https://leg.colorado.gov/sites/default/files/images/olls/crs2022-title-08.pdf (CRS § 8-4-101)

Source (secondary)

https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Opinions/2019/19SC553.pdf (Nieto opinion)

Verified
May 24, 2026
Notes

Nieto held that under CRS § 8-4-101(8)(a)(II)'s definition of "wages," earned but unused vacation pay is wages owed at separation; an employer policy purporting to forfeit accrued vacation is unenforceable. The decision is binding statewide on Colorado employers.

Massachusetts — earned vacation is wages under the Wage Act; treble damages + attorney fees for late payment

Appears in

Tool's data layer — Massachusetts mandatory = true, useItOrLoseItBanned = true, hasWaitingTimePenalty = true

Source (primary)
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148
Source (secondary)
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section150
Verified
May 24, 2026
Notes

§ 148 establishes the same-day payment requirement on involuntary discharge and the next-regular-payday requirement on voluntary resignation; § 150 establishes the mandatory treble-damages remedy plus attorney fees. The Massachusetts Attorney General's Wage Payment guidance corroborates.

Nebraska — earned vacation is wages; HFWA (2025) codified the combined-PTO trap; double damages + attorney fees for willful nonpayment

Appears in

Tool's data layer — Nebraska mandatory = true, useItOrLoseItBanned = true, hasWaitingTimePenalty = true

Source (primary)
https://nebraskalegislature.gov/laws/statutes.php?statute=48-1229
Source (secondary)
https://nebraskalegislature.gov/laws/statutes.php?statute=48-1231
Verified
May 24, 2026
Notes

§ 48-1229 defines wages to include "compensation for labor or services rendered by an employee, … including fringe benefits, when previously agreed to and conditions stipulated have been met by the employee," which Nebraska courts have construed to cover earned vacation. § 48-1231(1) provides double damages plus attorney fees for willful nonpayment. HFWA codified the combined-PTO bank treatment at separation.

Montana — earned vacation is wages; 110%-of-wages penalty for late final pay

Appears in

Tool's data layer — Montana mandatory = true, useItOrLoseItBanned = true, hasWaitingTimePenalty = true

Source (primary)
https://archive.legmt.gov/bills/mca/title_0390/chapter_0030/part_0020/section_0050/0390-0030-0020-0050.html
Source (secondary)
https://erd.dli.mt.gov/labor-standards
Verified
May 24, 2026
Notes

The 110% penalty is Montana-specific — final wages owed × 1.10, payable to the employee. The 4-hour involuntary-discharge window is unusual and the methodology surfaces it.

Generic "follows-policy" state bucket — covers ~15 states (IL, NY, OH, IN, MD, NC, ND, RI, WV, WI, NM, DC, LA, VT, NH) where payout depends on the employer's written policy

Appears in

Tool's data layer — FOLLOWS_POLICY entry, generic = true

Source (primary)

State DOR / Labor Department pages per state (cross-verified via the cluster article)

Verified
May 24, 2026
Notes

The generic bucket collapses ~15 states because the calculator's branching logic is identical across them: payout = policy. Illinois, North Dakota, Rhode Island, and Wisconsin have nuances (silence-defaults-to-payout in IL, voluntary-vs-involuntary distinction in ND, 1-year-service rule in RI, vesting-period rule in WI) — each documented in the companion article and surfaced via the cross-link from the methodology page. The simplification is honest about its scope.

Generic "no-statute" state bucket — covers ~30 states (TX, FL, GA, AZ, mountain-west, etc.) where no statute mandates payout

Appears in

Tool's data layer — NO_STATUTE entry, generic = true

Source (primary)

State DOR / Labor Department pages per state; cross-verified via the cluster article

Verified
May 24, 2026
Notes

Even in no-statute states, an employer policy promising payout creates a contractual obligation; the calculator's policy toggle handles this. The "~30 states" figure is the residual after 5 mandatory + ~15 follows-policy.

Statutory / regulatory

7 claims

Statistical aggregate

1 claim

5 states have mandatory vacation payout at separation (CA, CO, MA, NE, MT)

Appears in

Methodology § "What's modeled" + tool data layer (5 named mandatory entries)

Source (primary)

Per-state statutes cited above

Source (secondary)

Companion article vacation-payout-laws-by-state

Verified
May 24, 2026
Notes

Some sources include additional states under "mandatory payout" by treating policy-dependent states liberally; this calculator's 5-state mandatory list reflects the strict "earned vacation is wages by statute or controlling case" reading.

Currency

1 claim

Modeled state rules current AS OF this verification date

Appears in

Tool's data layer — all state entries

Source (primary)

Per-state statutes cited above

Verified
May 24, 2026

Sources

20 unique sources cited across the report — click to audit any claim directly against its evidence.

  1. 1.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=227.3
  2. 2.https://www.dir.ca.gov/dlse/FAQ_Vacation.htm
  3. 3.

    https://leg.colorado.gov/sites/default/files/images/olls/crs2022-title-08.pdf (CRS § 8-4-101)

  4. 4.

    https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Opinions/2019/19SC553.pdf (Nieto opinion)

  5. 5.https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148
  6. 6.https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section150
  7. 7.https://nebraskalegislature.gov/laws/statutes.php?statute=48-1229
  8. 8.https://nebraskalegislature.gov/laws/statutes.php?statute=48-1231
  9. 9.https://archive.legmt.gov/bills/mca/title_0390/chapter_0030/part_0020/section_0050/0390-0030-0020-0050.html
  10. 10.https://erd.dli.mt.gov/labor-standards
  11. 11.

    State DOR / Labor Department pages per state (cross-verified via the cluster article)

  12. 12.

    State DOR / Labor Department pages per state; cross-verified via the cluster article

  13. 13.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=203
  14. 14.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=201
  15. 15.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=202
  16. 16.

    https://leg.colorado.gov/sites/default/files/images/olls/crs2022-title-08.pdf (statute)

  17. 17.https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=53066
  18. 18.https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Opinions/2019/19SC553.pdf
  19. 19.

    Per-state statutes cited above

  20. 20.

    Companion article vacation-payout-laws-by-state

Found something off?

Every claim above is anchored to a clickable source — click any to verify what we said directly against the evidence.

See our fact-checking methodology for the standards this report follows.

About Clockspot

Clockspot is online time clock software for small businesses — the simplest way to track employee time, with GPS location tracking, PTO accruals, job costing, and overtime calculation. Used in all 50 states since 2007.

Want to simplify how your team tracks time? See how Clockspot works.