Washington PTO laws: vacation, sick leave and payout
Washington PTO laws leave ordinary vacation benefits to the employer's agreement, while requiring paid sick leave for covered workers. The state's 40-hour sick-leave carryover floor is not an annual earning cap. Some construction workers also have a mandatory separation-payout right.
Last checked: October 27, 2026. Private-sector employer guidance.
Washington PTO rules at a glance¶
| Question | Rule and primary source |
|---|---|
| Paid vacation required? | No general state requirement; employer agreements supply the benefit. |
| Sick-leave accrual / cap | At least 1 hour per 40 worked; no statewide annual accrual cap; up to 40 unused hours must carry over. |
| Vacation payout required? | Ordinary vacation follows the agreement; qualifying construction PTO banks have a statutory exception. |
| Use-it-or-lose-it allowed? | Voluntary vacation follows the agreement; sick-leave carryover protections remain. |
| Final paycheck deadline | On or before the next regular payday, whether the employee quits or is fired. |
Is paid vacation required in Washington?¶
Washington does not generally require employers to provide paid vacation. A company policy, agreement or collective bargaining agreement can create the benefit. L&I does not enforce ordinary vacation agreements; employees may pursue agreed benefits privately. Keep the promise clear enough for both payroll and employees. L&I vacation guidance.
Write vacation earning, year-end treatment and separation payout together. A generic “PTO follows state law” sentence leaves an office manager without the actual company rule. Give that person a policy they can apply to a balance and explain to a departing employee.
Paid sick leave in Washington¶
Washington's statewide paid-sick-leave requirement began January 1, 2018 for covered employees. It requires at least one hour per 40 hours worked, with use available by the 90th calendar day. It protects qualifying illness, family-care and other authorized absences. RCW 49.46.210 sets the statewide floor.
Coverage is broader than full-time employment but not universal. Qualifying overtime-exempt executives, administrators, professionals and outside salespeople are excluded from the statewide requirement; a salary alone does not establish the exemption. Check L&I's coverage rules and the applicable city ordinance.
An eligible worker with 2,080 hours actually worked earns 2,080 ÷ 40 = 52 sick hours. The 40-hour carryover floor does not turn that into a 40-hour annual allowance. Employers must allow continued statutory accrual and lawful use, subject to the applicable rules. WAC 296-128-620; L&I minimums.
Check these local overlays:
| Location | Why the state setting may be insufficient | Primary source |
|---|---|---|
| Seattle; ordinance began September 1, 2012 | Accrual is 1 per 40 below 250 worldwide FTEs, 1 per 30 at 250+. Carryover: 40 hours below 50 FTEs, 56 at 50–249, 72 at 250+; largest-employer combined PTO has a higher rule | Seattle Office of Labor Standards |
| Tacoma; effective February 2016, updated January 2018 | Local coverage and additional permitted uses need review alongside the state's rules | Tacoma's 2026 official notice |
| SeaTac | Covered hospitality and transportation employers have a separate employment-standards ordinance | City ordinance resources |
Final pay and unused PTO payout at separation¶
Ordinary vacation payout follows the employer's agreement rather than a general statewide cash-out requirement. Final wages are due by the next regular payday after resignation or discharge. Separate sick-leave rules can create an exception, so identify the bank before making a payout decision. L&I final-pay guidance.
Since January 1, 2024, qualifying construction workers separating before their 90th day must receive unused accrued sick leave. The rule generally covers NAICS 23 construction employers, excluding residential building construction under 2361. L&I construction Q&A.
If a PTO program satisfies sick-leave requirements for those workers, the rule requires payment of the PTO balance. A handbook's ordinary vacation no-payout clause is not a substitute for that review. WAC 296-128-700(4).
Use-it-or-lose-it and accrual caps¶
Keep vacation limits separate from protected sick leave. Ordinary vacation terms come from the employer agreement. Statutory sick leave must meet accrual, access and carryover protections even when administered through a PTO program. A shared bank needs more than a shared name. L&I vacation guidance; PTO-program rule.
For sick leave, a carryover cap is different from stopping accrual during the year. Keep earned, used and carried balances identifiable. Review qualifying front-loading against all statutory requirements rather than assuming an upfront grant automatically removes carryover. RCW 49.46.210.
Other leave small employers should know¶
| Leave | Paid? | Who is covered / key condition | Primary source |
|---|---|---|---|
| Jury duty | No general state employer-pay duty | Summoned employees receive protected time away | Washington courts' juror guide |
| Domestic-violence leave | Available paid leave or reasonable unpaid leave | Qualifying victims and family members; leave is not limited by an available PTO balance | L&I leave guidance |
| Paid Family and Medical Leave | State-program benefit | Eligibility differs from job protection; in 2026, job protection generally reaches employers with 25+ employees and qualifying workers with 180 days' service | ESD employer guidance |
What this means for your PTO policy¶
- Identify the employee's work location and state-law coverage.
- Keep vacation promises and protected sick-bank rules distinguishable.
- Label carryover, accrual and annual use as separate concepts.
- Add a construction-worker separation check where relevant.
- Use the Free PTO policy generator, then review the Washington considerations and applicable local ordinance.
Compare locations using PTO payout laws by state. A general vacation classification is a starting point for review, not the complete answer for every bank.
Track separate banks in Slack or Microsoft Teams¶
Cabana supports separate leave types and balances, with accrual methods and carryover rules you configure. Employees request leave and check balances through PTO tracking in Slack or PTO tracking in Microsoft Teams. Managers approve from the message.
Use PTO tracking software for small teams for the request workflow and balance history. Review How PTO carryover rules work when choosing a year-end setting.
Frequently asked questions¶
Is 40 hours the annual sick-leave cap?¶
No: the statewide 40-hour figure is the minimum protected carryover amount, not an annual accrual cap. Employees continue to earn leave on covered hours worked. Keep annual earning and year-end carryover distinct in the policy and balance report. L&I's minimum requirements.
Does every salaried employee lack sick-leave protection?¶
No: salary alone does not establish an exemption. Review the actual classification and applicable local rules before excluding someone from the sick bank. This is a coverage decision for the policy owner, not a shortcut a request reviewer should make during an absence. L&I's coverage guidance.
Can a PTO bank satisfy Washington sick-leave law?¶
Yes, a qualifying PTO program can satisfy the statutory requirement. The program must meet the applicable accrual, use, carryover, notice and recordkeeping requirements. Review the full policy before combining banks; a generous vacation allowance alone does not describe how protected sick leave can be used. WAC 296-128-700.
Must sick leave be paid out when someone leaves?¶
Usually the state does not require a sick-balance cash-out, but qualifying construction workers separating before day 90 have an exception. Check the worker's duties, industry classification and bank arrangement before relying on a general no-payout policy. L&I's construction-worker Q&A explains the qualifying conditions.
Can final wages wait until equipment is returned?¶
No: employers cannot withhold the final paycheck because keys, uniforms, tools or equipment remain outstanding. Give payroll the separation date immediately and manage property recovery as a separate task. The employee's ordinary final wages remain due by the next regular payday. L&I Getting Paid guidance.
Is Seattle's sick-leave rule identical to the state's?¶
No: Seattle has its own employer-size tiers and requirements. Its carryover table distinguishes smaller employers from larger businesses, so a single statewide carryover setting can miss the city rule. Check worldwide FTEs and the employee's covered city work before assigning a policy. Seattle's official PSST page.
Last checked August 2026. This is general guidance rather than legal advice, and employment rules do change. Worth a quick check with your state labor agency or an employment attorney before relying on anything state-specific.
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