Regarding accrued Paid Time Off (PTO) in a final paycheck, which statement accurately reflects common variability?
Answer
Payout of accrued vacation time is mandated by some states but not others, and sick leave often does not require payout.
The requirement to pay out unused vacation time is highly variable based on state law, although an employer policy or contract promising payout generally becomes binding. Sick leave is often specifically excluded from required payout upon separation in many jurisdictions.
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