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Montana PTO laws - vacation payout and accrual rights
What Montana law says about paid time off payout and accrual
Montana REQUIRES vacation payout at termination
Earned vacation must be paid out at termination
Montana PTO law overview
Montana requires payout of earned but unused vacation at termination. Montana treats accrued vacation as wages that cannot be forfeited.
Montana is one of only a handful of states that mandates vacation payout at termination by statute. Montana also prohibits use-it-or-lose-it vacation policies.
Governing law
Montana PTO and vacation law is governed by Montana Wage Payment Act MCA 39-3-205 (MCA § 39-3-205). The official authority for Montana wage and hour enforcement including PTO disputes is the Montana Department of Labor and Industry.
Data source: MCA § 39-3-205. Last verified: 2026. PTO laws can change. Consult an employment attorney for advice specific to your Montana situation.