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Massachusetts PTO laws - vacation payout and accrual rights
What Massachusetts law says about paid time off payout and accrual
Massachusetts REQUIRES vacation payout at termination
Earned vacation must be paid out at termination
Massachusetts PTO law overview
Massachusetts treats accrued vacation as earned wages that must be paid out at termination. Massachusetts law prohibits employers from taking away earned vacation. Use-it-or-lose-it policies that eliminate earned vacation are not permitted.
Massachusetts is one of the strongest states for PTO rights. Accrued vacation is treated as wages and cannot be forfeited. Employers must pay out all earned unused vacation at termination at the final regular rate of pay.
Governing law
Massachusetts PTO and vacation law is governed by Massachusetts Payment of Wages Act MGL c 149 s 148 (M.G.L. c. 149, § 148). The official authority for Massachusetts wage and hour enforcement including PTO disputes is the Massachusetts Attorney General's Fair Labor Division.
Data source: M.G.L. c. 149, § 148. Last verified: 2026. PTO laws can change. Consult an employment attorney for advice specific to your Massachusetts situation.