This guide covers PTO and vacation leave laws in California for 2026. Whether you're an employee checking your rights or an HR team updating your handbook, here's what the law actually says — including payout rules, sick leave mandates, and what employers can and cannot do with your accrued time.
Does California Require Employers to Provide PTO?
No U.S. state requires employers to provide paid vacation days — and California is no exception. However, paid sick leave is a different matter: 5 paid sick days (40 hours) per year minimum under SB 616 (effective Jan 1, 2024).
Once an employer promises vacation or PTO in a written policy or handbook, that promise becomes a legal obligation in virtually all states including California. Courts consistently treat written PTO promises as binding wage commitments.
PTO Payout at Separation — California Rules (2026)
| Question | Answer for California |
|---|---|
| Is payout required by law? | Yes — legally required |
| Governing law / statute | California Labor Code § 227.3 |
| Use-it-or-lose-it allowed? | Use-it-or-lose-it policies are illegal. Employers may set accrual caps (e.g., 1.5× annual rate) but cannot forfeit earned vacation. |
| Who enforces violations? | California Labor Commissioner's Office (DIR) |
Accrued vacation is treated as earned wages. Employers must pay all unused vacation on the final paycheck. Use-it-or-lose-it policies are void and unenforceable.
Use our PTO payout calculator to estimate your gross payout value, or check the full California payout rules page for state-specific details.
Carryover & Use-It-or-Lose-It Rules in California
Use-it-or-lose-it policies are illegal. Employers may set accrual caps (e.g., 1.5× annual rate) but cannot forfeit earned vacation.
Important distinction: an accrual cap (stopping new accrual when a balance ceiling is reached) is different from forfeiture (zeroing out earned PTO). Accrual caps are legal everywhere. Forfeiture of already-earned PTO requires careful attention to state law. See the California PTO carryover rules page for full details.
PTO Accrual Rates — Common Schedules in California
| Pay frequency | 10 days/year (80 hrs) | 15 days/year (120 hrs) | 20 days/year (160 hrs) |
|---|---|---|---|
| Weekly (52 periods) | 1.54 hrs/period | 2.31 hrs/period | 3.08 hrs/period |
| Biweekly (26 periods) | 3.08 hrs/period | 4.62 hrs/period | 6.15 hrs/period |
| Semi-monthly (24 periods) | 3.33 hrs/period | 5.00 hrs/period | 6.67 hrs/period |
| Monthly (12 periods) | 6.67 hrs/period | 10.00 hrs/period | 13.33 hrs/period |
Use our PTO accrual calculator to compute your exact per-period accrual based on your annual allowance and pay schedule.
Paid Family & Medical Leave in California
California Paid Family Leave: up to 8 weeks at 60–70% of wages. State Disability Insurance covers medical leave.
Special Rules & Deadlines in California
Final paycheck with PTO payout is due immediately if fired, or within 72 hours if the employee resigns without notice.
Frequently Asked Questions — California PTO Laws
Can my employer in California take away PTO I have already earned?
Use-it-or-lose-it policies are illegal. Employers may set accrual caps (e.g., 1.5× annual rate) but cannot forfeit earned vacation. For detailed protection rules, see our guide: Can My Employer Take Away My Accrued PTO?
Do I get paid for unused PTO when I quit in California?
Accrued vacation is treated as earned wages. Employers must pay all unused vacation on the final paycheck. Use-it-or-lose-it policies are void and unenforceable. For the full breakdown, see: What Happens to PTO When You Quit?
How much PTO am I legally entitled to in California?
No California law requires employers to provide paid vacation. Paid sick leave rules: 5 paid sick days (40 hours) per year minimum under SB 616 (effective Jan 1, 2024). Read more: How Much PTO Do I Get By Law?
Resources & Official Authority
For official guidance, contact: California Labor Commissioner's Office (DIR). For self-service calculations, use our free tools: PTO accrual calculator, payout calculator, and hours-to-days converter.