Does Target Pay Out Vacation Hours When You Quit?

Does Target Pay Out Vacation Hours When You Quit

Target is one of the largest merchandise retailers in America, with stores all over the U.S. and the District of Columbia.

It employs over 400,000 team members in diverse roles and positions at its stores.

One of the key attractions of working with Target is its inclusivity, work culture, pay scale, and other work-related benefits.

However, despite all the advantages, some employees may leave Target for better opportunities with other companies or for personal reasons.

Whatever the reason, some employees may have one key question in their minds when they decide to quit Target.


Target has very clearly defined work policies for all employees who work with Target.

These policies also clearly explain the guidelines if an employee quits Target, if vacation hours are to be paid out to the employees, and what the norms are for them.

The good news is that Target does pay out vacation hours to employees who quit target. However, employees must meet the following to be paid vacation hours:

  • They should have worked with Target for at least 12 months.
  • The employees should have accrued at least ten days of vacation time.

Target may also offer additional payouts for employees who have completed more than two years with the company and/or have 20 days of vacation.

Employees of Target planning to quit the organization may sometimes worry about the notice period they need to give and whether they will be paid all the vacation time they have accrued over the years.

In this article, we answered the question: “Does Target pay vacation time when you quit and are eligible for it?



As one of the largest merchandise retailers in the country, Target offers plenty of work opportunities and benefits for those who would love to build their career with them.

However, people looking for more growth opportunities, unhappy with their current roles, or having other personal reasons may quit their jobs at Target after some time.

Quitting Your Job

Quitting Your Job

To quit your job at Target, you are ideally required to give a two-week written notice to the manager of your report. You can share the reasons for quitting your job if you want, but you are not required to do so.

The two-week notice period rule may differ from employee to employee based on their tenure with the company, their current role and responsibilities, and how soon Target can assign someone else to that position.

You will ideally get all the wages due to you on your last working day.

Vacation Hours Payout Policy

Vacation Hours Payout Policy

Target follows a standard vacation hours payout policy for all employees based on how long they have been with the organization and how much vacation time they have accrued.

To be eligible for vacation hours payout time, every employee must have worked with Target for at least one year and accrued at least ten days of vacation time.

You can also be eligible for a higher payout if you have worked with Target for over two years.

Employees with more than 20 days of vacation may also be eligible for more payouts when they quit their organization.

Employees can receive their vacation payout as a lump sum in cash or as gift cards/store credits.

Do note that taking your vacation payout as a gift card or store credit may restrict you from using the same within Target stores. You may also be taxed for the vacation payout based on your tax obligations.


It is interesting to note that Target ensures it fulfills all its obligations to an employee, even when they quit their job at Target.

Paying out vacation time for eligible employees is a good way to reward their loyalty and dedication toward their work.

That you have the freedom to select from a lump sum cash payment or gift card/store credits is also a significant benefit as it helps you plan how you want to spend the vacation hours payout you have accrued over the years.

Frequently Asked Questions

Can You Be Taxed on Your Vacation Hours Payout?

Yes. Depending on your tax obligations, you may be required to pay a tax on your vacation hours payout.

Do All Employees Get Paid for Vacation Hours on Quitting?

No. All employees are not eligible for a payout of their vacation hours. It depends on their tenure with the company and how many days of vacation time they have accrued.

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