Missouri PTO Laws 2026: Day-of-Discharge Final Paycheck Rule Under RSMo § 290.110

Missouri sits firmly in the employer-discretion tier of PTO law. No vacation mandate, no sick leave requirement, use-it-or-lose-it legal, and no required payout at termination unless your employer's written policy says so. What's distinctive about Missouri is its preemption statute — which actively blocks cities from passing their own sick leave or minimum wage rules, leaving the entire state on a single employer-friendly baseline. For workers, this makes understanding your specific company's written policy more important than in states with stronger statutory protections.

Vacation Pay: Policy Is Everything in Missouri

Missouri has no statute treating accrued vacation as earned wages, unlike California, Illinois, or Massachusetts. Vacation pay is a discretionary benefit, and your rights depend entirely on what your employer has put in writing. Missouri courts will enforce a vacation payout promise in a handbook or offer letter as a contract — but they won't create an entitlement that doesn't exist in the policy.

Use-It-or-Lose-It: Legal and Common

Missouri employers can legally run use-it-or-lose-it vacation policies — year-end resets, rollover caps, anniversary forfeiture — as long as the policy is clearly stated. Missouri has no law protecting accrued vacation from forfeiture the way California's Labor Code does.

The most common Missouri structures: annual reset on December 31 or work anniversary; partial rollover (40–80 hour cap); no rollover and no payout at termination. Some larger Missouri employers — particularly those in healthcare, finance, and technology — offer more generous rollover and payout policies to compete for talent, but there's no legal floor.

Final Paycheck Rules: Day-of-Discharge for Terminations

Missouri's final paycheck rule depends on whether the separation is voluntary or involuntary, and the difference is bigger than most Missouri HR teams realize:

• Fired or laid off (involuntary discharge). Under RSMo § 290.110, an employer who discharges an employee — with or without cause — must pay all unpaid wages then earned on the day of the discharge. This includes any vacation payout owed under the employer's written policy.
• Voluntary resignation (quit). The statute does not specify a special timeline for voluntary departures, so the default applies: payment on the next regular payday following the last day of work.

The day-of-discharge rule for terminations is a notable feature of Missouri wage law that often surprises employers used to "next regular payday" rules from other states. Same-day payment is required at the moment of discharge — there's no grace period for payroll processing, no automatic extension to the next pay cycle.

The Written-Demand Penalty Mechanism

Missouri's penalty structure for unpaid wages is unusual. Unlike Alaska's automatic 90-day continuing wages or West Virginia's automatic 3× multiplier, Missouri's penalty wages only kick in when the employee takes a specific procedural step:

1. The employee is discharged but not paid wages owed on the day of discharge.
2. The employee (or their personal representative) makes a written demand on the employer for the unpaid wages.
3. The employer has a short window — typically 7 days — to pay after receiving the written demand.
4. If the employer fails to pay after the written demand, the employee's wages continue to accrue at the same daily rate as a penalty, up to a statutory maximum (often described as up to 15 days of additional wages under prevailing administrative guidance).

The structure means that a Missouri employee can't passively wait for the penalty to accrue — they have to assert the demand in writing. The demand is the gate. For HR teams, this is a procedural lifeline: if you missed the day-of-discharge deadline by mistake, paying promptly after receiving a written demand limits the exposure significantly.

For Employers: Missouri PTO Policy Best Practices

Missouri's lack of mandates gives employers flexibility — but vague policies create disputes. Core recommendations:

• State explicitly what happens to unused vacation at termination — forfeiture or payout
• If use-it-or-lose-it, specify the exact reset date and conditions
• Apply the policy consistently across employees — selective enforcement creates discrimination exposure
• Update policies in writing with advance notice before changing them
• Consider whether your voluntary sick leave policy adequately covers your workforce, even without a legal mandate

Frequently Asked Questions

Does Missouri require vacation payout at termination?

Only if your employer's written policy promises it. Missouri has no statute requiring vacation payout. If your handbook or offer letter commits to payout, Missouri courts treat that as an enforceable contractual obligation. If the policy is silent or states forfeiture, you have no legal entitlement.

Does Missouri have paid sick leave?

No. Missouri has no statewide paid sick leave law, and its preemption statute (§67.1602) blocks cities from passing their own mandates. Kansas City attempted a sick leave ordinance in 2020; it did not survive legal challenge. As of 2026, sick leave in Missouri is entirely at employer discretion.

Is use-it-or-lose-it legal in Missouri?

Yes. Missouri employers can legally forfeit unused vacation at year-end or under other conditions, provided the policy is clearly communicated in writing. There is no Missouri law equivalent to California's prohibition on PTO forfeiture.

When must a Missouri employer issue a final paycheck?

It depends on whether the separation is voluntary or involuntary. Under RSMo § 290.110, employees who are fired or laid off must be paid all wages owed on the day of discharge — including any promised vacation payout. Employees who voluntarily resign are paid on the next regular payday following their last day of work. If an employer fails to pay a discharged employee on time, the employee can make written demand for the unpaid wages; if the employer still fails to pay within roughly 7 days of the demand, penalty wages begin accruing at the employee's regular rate (up to 15 days under prevailing administrative guidance).

Can Missouri cities require paid sick leave?

No. Missouri's preemption statute prevents cities and counties from enacting employment regulations that exceed state law. Both Kansas City and St. Louis have explored sick leave mandates; both have been blocked or preempted. Workers in Missouri cities have the same sick leave rights as workers statewide — which means none, beyond what employers voluntarily provide.

I have a Missouri PTO dispute. Where do I file a claim?

File a wage claim with the Missouri Department of Labor and Industrial Relations — Labor Standards Division — online at labor.mo.gov. The Division handles claims for unpaid wages, including promised vacation pay. For disputes over $100, you can also file in Missouri small claims court (up to $5,000) or hire a private employment attorney for larger amounts.