New York Vacation Carryover Request
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FAQ
NY Labor Law 198-c. Neither New York's Legislature nor its court has explicitly stated whether an employer may implement a policy or enter into employment contracts requiring employees to forfeit accrued vacation upon separation from employment, regardless of the reason.
To summarize2026in New York State, if an employee has earned unused vacation time, and there is no written forfeit policy, then the employer should pay the employee for the earned unused vacation time upon resignation or termination.
In New York, employers are generally required to pay out an employee's unused vacation time, unless the company has a formal, written policy that specifically forfeits your right to be paid for unused vacation.
Under the law, there should not be any carry over. Moreover, employees cannot carry over their statutory minimum vacation time. If there is carry over, the employer has failed to comply with the Employment Standards Act.
In its response to comments, the Department clarified that employers cannot cap the number of accrued but unused sick leave hours that employees can carry over from one calendar year into the next, even when an employer frontloads sick leave.
In regards to annual vacation pay, the Employment Standards Act states that an employer has to make sure that every year vacation time and money earned are paid out to the employee. There is no carry over. Sometimes an employer lets the employee take a vacation right away in the first year.
To summarize2026in New York State, if an employee has earned unused vacation time, and there is no written forfeit policy, then the employer should pay the employee for the earned unused vacation time upon resignation or termination.
The New York Paid Sick Leave Law provides that employees can carry over unused sick leave from one year to the next. But it also permits employers to limit their employees' use of sick leave to the statutory level (40 or 56 hours based on employer size) each year.
In New York, employers are generally required to pay out an employee's unused vacation time, unless the company has a formal, written policy that specifically forfeits your right to be paid for unused vacation.
In New York, employers are generally required to pay out an employee's unused vacation time, unless the company has a formal, written policy that specifically forfeits your right to be paid for unused vacation.
