In New Hampshire, earned vacation and PTO must be paid out when you leave a job if your employer's policy or practice provides for that benefit. State law (RSA 275:43, V) expressly defines vacation pay, holiday pay, sick pay, severance pay, and personal days as "wages" whenever those benefits are "a matter of employment practice or policy, or both." Once accrued vacation qualifies as wages, your employer cannot withhold it on the way out the door. There is no separate statute forcing every employer to offer paid vacation, but if your handbook or established practice grants it, New Hampshire law makes the accrued, earned portion enforceable as unpaid wages.
New Hampshire's Specific Rule: Policy Controls, But Earned Vacation Is Wages
New Hampshire takes a middle-ground approach that differs sharply from states like California (where vacation never expires) and states like Florida or Georgia (which have no payout statute at all). The controlling principle here is that the employer's written policy or practice defines whether vacation accrues and how much is owed — but once it is earned under that policy, it is treated as wages that must be paid.
This comes from two parts of the wage law working together:
RSA 275:43, V classifies vacation pay and similar benefits as wages when they are a matter of employment practice or policy.
RSA 275:43 and RSA 275:44 require employers to pay all earned wages due, including on separation, within set deadlines.
So the question is not simply "does New Hampshire force payout?" The question is "what does your employer's policy say, and have you earned the time under it?" If the policy says you earn vacation as you work and stays silent on forfeiture, the accrued balance is owed at separation.
Are Use-It-or-Lose-It Policies Allowed in New Hampshire?
Yes — New Hampshire permits use-it-or-lose-it and forfeiture-at-termination policies, but only when they are clearly and conspicuously communicated in writing. The New Hampshire Department of Labor and its regulations require employers to have written policies covering vacation, sick leave, and PTO, including what happens to unused time when employment ends.
The practical rules look like this:
An employer may cap annual carryover or impose a "use it or lose it" deadline during employment, if the policy says so in writing in advance.
An employer may state that unused vacation is forfeited at termination — but this must be spelled out clearly in the written policy that you received or had access to.
If the policy is silent, ambiguous, or was never put in writing, the default leans toward treating accrued vacation as earned wages that must be paid out.
An employer cannot retroactively change a policy to strip away vacation you already earned under the old terms.
Because the written policy is decisive, the single most important document in any New Hampshire vacation-payout dispute is your employee handbook or the standalone PTO policy you acknowledged.
How Written Policy Controls the Outcome
New Hampshire employers are required to make their paid-time-off rules clear. When the Department of Labor reviews a wage claim over unused vacation, it looks at:
Whether a policy or practice existed granting vacation in the first place.
How vacation accrues — for example, earned gradually each pay period versus granted in a lump sum on an anniversary date.
Whether the policy addresses payout at separation or imposes a valid forfeiture condition.
Whether you actually met the policy's conditions (such as giving required notice) to remain eligible for payout.
If your employer never reduced its vacation rules to writing but routinely paid out balances to departing workers, that established practice can itself create an obligation under RSA 275:43, V. Practice and policy both count.
When Final Wages (Including Vacation) Must Be Paid
If your accrued vacation is owed, it is part of your final wages and follows New Hampshire's separation-pay deadlines under RSA 275:44:
If you are fired or discharged: your employer must pay all wages due within 72 hours of termination.
If you quit or resign: you must be paid by the next regular payday. If you gave at least one pay period of notice, payment is due within 72 hours of your last day.
If you are laid off: wages are generally due by the next regular payday.
An employer that willfully fails to pay wages owed can face liquidated damages and penalties under New Hampshire's wage statutes, so the cost of wrongly withholding earned vacation can exceed the balance itself.
How New Hampshire Compares to the Federal Baseline
Federal law sets a floor but does not address vacation payout. The federal Fair Labor Standards Act (FLSA) guarantees a minimum wage of $7.25 per hour and overtime at one-and-a-half times the regular rate after 40 hours in a workweek, but it does not require employers to provide paid vacation or pay out unused PTO. Those rules come entirely from state law and employer policy.
New Hampshire's own minimum wage is tied to the federal rate at $7.25 per hour as of 2026, because the state repealed its higher figure and now follows the federal floor. Minimum-wage rules can change, so confirm the current rate with the New Hampshire Department of Labor before relying on it. The key takeaway: on vacation payout, New Hampshire gives workers meaningfully more protection than federal law by treating earned vacation as wages.
How to Enforce Your Right to a Vacation Payout
If your employer refuses to pay out earned vacation that its policy or practice grants, you can take these steps:
Get the policy in writing. Save the handbook page, PTO policy, or any acknowledgment you signed, plus pay stubs showing your accrued balance.
Make a written demand. Ask your employer in writing to pay the unused vacation as wages due under RSA 275:43, V.
File a wage claim. The New Hampshire Department of Labor, Wage and Hour Division, investigates unpaid-wage complaints, including vacation pay, at no cost to you.
Watch the deadline. File promptly; wage claims are subject to a statute of limitations, so do not wait once payment is overdue.
Consider an attorney for larger balances or willful nonpayment, where penalties and liquidated damages may apply.
Where to Verify New Hampshire's Rules
The authoritative source is the New Hampshire Department of Labor (NH DOL), which administers the state's wage statutes (RSA chapter 275) and the Lab administrative rules on vacation and PTO. Because handbook language varies and statutes are periodically amended, confirm the current deadlines, your employer's specific policy terms, and the filing process directly with NH DOL before acting. This article is general information, not legal advice for your individual situation.
Official New Hampshire Sources
This page is based on New Hampshire employment law. Rules and figures change — verify the current details directly with the official New Hampshire sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside New Hampshire state law.
Frequently asked questions
Does New Hampshire require employers to pay out unused vacation when I leave?
Yes, if your employer's policy or practice provides for vacation. Under RSA 275:43, V, vacation pay is treated as wages when it is a matter of employment policy or practice, so earned, accrued vacation must be paid at separation unless a valid written forfeiture policy applies.
Are use-it-or-lose-it vacation policies legal in New Hampshire?
Yes. New Hampshire allows use-it-or-lose-it and forfeiture-at-termination policies, but only when they are clearly stated in writing in advance. If the policy is silent or ambiguous, accrued vacation generally must be paid out as earned wages.
How quickly must my final vacation pay be paid in New Hampshire?
Final wages, including owed vacation, follow RSA 275:44. If you are fired, payment is due within 72 hours. If you quit, payment is due by the next regular payday (or within 72 hours if you gave at least one pay period of notice).
What if my employer never put its vacation policy in writing?
An established practice of granting and paying out vacation can itself create an obligation under RSA 275:43, V. Both policy and practice count, so a consistent history of paying departing workers their balances can make the payout enforceable.
Who do I contact to enforce a vacation payout in New Hampshire?
The New Hampshire Department of Labor, Wage and Hour Division, investigates unpaid-wage claims, including unused vacation, at no cost. Save your written policy and pay records, make a written demand, and file a wage claim promptly within the statute of limitations.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
Knowing your rights is the first step
Join thousands committing to calmly and consistently exercise their constitutional rights.
