Do employers in Iowa, Nebraska and South Dakota have to pay out earned PTO, or can their policies allow for forfeiture?
Jeana Goosmann’s Vistage group recently encountered this question and if these business owners want to know, we bet you do to! It’s your employee’s last day—are they walking out with just their wages for the last pay period, or are they getting a big, fat PTO check? This depends on your company’s policies or past practices, and, in some cases, the state where the employee is working. While neither state requires private employers to offer paid vacation, Iowa, Nebraska and South Dakota have differing requirements as to vacation payout upon termination, so even just across state lines your company must be aware of the jurisdiction in which it is operating.