Apr 30 2026
Josh Goodbaum: Hi, Amanda.
Amanda DeMatteis: Hi, Josh. What are we gonna talk about today?
Goodbaum: I want to talk about paid time off and separations from employment. I have two questions, one we get all the time and one that’s a new one for me.
Here’s the question we get all the time as employment lawyers who represent employees: “I separated from my job. I had banked PTO, meaning I hadn’t used all my PTO or vacation time. Does my employer have to pay me out for monetary value of my unused PTO time?” What’s the answer?
DeMatteis: In Connecticut, the answer is maybe. If your employer has a policy that says that PTO is paid out at the time of separation of employment, then yes, absolutely, they owe you that money. They should write you a check at the time that they pay your final paycheck. But if they do not have a policy that says that you are owed that money at the time of termination, then no, you will not receive that money when your employment separates.
Goodbaum: So there might be some states where that is required by law, but in Connecticut, the state just defers to the employer’s policy?
DeMatteis: That’s exactly right, Josh.
Goodbaum: That’s very helpful, Amanda. Here’s my second question:
Imagine that you’re a Connecticut employee and you get a block of PTO at the beginning of the year – let’s say 4 weeks – and you use that 4 weeks all in the first half of the year, and then you get terminated before the end of the year. So you haven’t actually earned those whole 4 weeks, but you’ve used them all, then you separate from your employer before the year is over. Then the employer says, “We want you to pay back the PTO you didn’t really earn, and we’re gonna deduct the value of that PTO from your last paycheck.” Can your employer do that?
DeMatteis: Randomly, Josh, I just saw this for the first time in my career last week, so I have an answer for you.
The answer is no. Let’s say a Connecticut employee works until February. And during that timeframe, from the beginning of the year to the time that they ended their employment in February, they’ve used all their vacation. And now their employer says, “Well, hold on a minute, you didn’t earn all of that vacation time because you worked just a very small portion of the year. So we’re going to go ahead and withhold your whole last paycheck for hours that you actually worked and performed services for this employer, because we want to recoup that money.” That’s a no-no. Your employer is not allowed to do that in Connecticut. Even if they have a policy in their handbook that expressly authorizes them to.
Now, there are two exceptions, TWO ways that money can be withheld from an employee’s paycheck that are legal in Connecticut.
Number 1 – some type of court mandate. Maybe that’s taxes, maybe it’s child support, whatever it may be. If there is a court order to go ahead and withhold that money from a paycheck, whether it be the last or any other, that is OK.
Number 2 – if you specifically authorize and sign something allowing your employer to deduct those vacation hours that you used or PTO hours that you used that had not yet accrued.
So, it has to be with your express authorization on something signed by you or an order from the court allowing your employer to withhold money for hours that you’ve actually worked.
Goodbaum: Great advice, Amanda. Thank you so much. Thank you all for watching. We’ll see you next time.
Posted by Garrison, Levin-Epstein, Fitzgerald & Pirrotti, P.C. in Commentary
Tagged Amanda DeMatteis, Joshua Goodbaum
