I am an employee of a California company living and working in Alabama. From what I understand the company doesn't have any incorporation in Alabama. They do deduct state income state however.

I understand in California accrued vacation/PTO time is considered unpaid income and must be paid.

In Alabama it's considered a "Fringe benefit" and not subject to payment.

What would apply in my case? I spoke to a co-worker, in AL, who quit and says he got paid for his unused vacation.

Company handbook reads:

"Upon termination of employment, employees will be paid for the unused PTO that as been earned through the last pay period."

Does not stipulate that this is just for CA employees