Relating to compensation for certain unused paid time off upon termination of employment; prescribing an effective date.

Summary

The bill mandates that any employer who offers paid vacation must compensate employees at their regular rate for accrued vacation that isn’t used at termination. It also sets conditions under which employers may require vacation use or forfeiture, provided they give proper notice. The change is tied to existing final‑wage rules and takes effect 91 days after the 2026 session ends.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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