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Connecticut Vacation Pay

Is there any Connecticut law that requires employers to pay terminated employees for accrued vacation time?

There is no law in Connecticut, or in most of the states in the nation, that requires companies to pay workers for accrued vacation time upon termination.

Employers are not required by state law to give workers vacation benefits. Each company can establish their own policies for vacation, including whether workers will be paid for accrued vacation time at termination.

The law does require any company with a policy to pay workers for accrued vacation time to abide by that policy. A company which has never paid employees for their vacation time, however, is not required to enact a policy to do so.

If an employer has paid for vacation time in the past in comparable situations, he or she must continue to pay for vacation time. Failure to continue the practice could constitute discrimination, which is illegal. All employers must provide benefits without regard to race, age (over 40), color, sex, religion, pregnancy, disability or country of origin.

Nine states, including California, Maine and Oregon, have enacted laws mandating that companies pay for accrued vacation upon an employee’s termination. These laws vary from state to state, but generally provide payout regardless of whether the worker resigned, was laid off, or was fired.

Indiana and North Carolina handle payment of accrued vacation time upon termination in a different manner. In these states, the courts consider all employees as entitled to be paid, except when the employer has established a written policy not to pay for vacation time. The courts require the company’s policy to be in writing and to contain specific details about the scenarios where the employee will not be paid for accrued vacation time.

Oklahoma and several other states have established yet another way to handle payout for accrued vacation. The law doesn’t require payment, but does mandate that any promises an employer makes to employees must be honored. If the handbook says the company will pay workers for vacation time upon leaving the job, then the company is legally bound to provide that payment. The policy is enforced by the state Department of Labor. JH

This entry was posted on Thursday, February 14th, 2008 at 10:23 am and is filed under
Benefits, Termination.
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6 Responses to “Connecticut Vacation Pay”

  1. archie wood Says:

    I visited a whole lot of website however think this holds something special from it from it

  2. Caitlin Says:

    Thanks for the kind words, archie!~Catilin

  3. Cris Says:

    Can a Connecticut company only pay you a percentage of unused vacation? They used to pay 100% but as of march 31 the new policy is that they will only pay 60% of unused vacation. A real morale booster. I guess I should just work 40% less on the days I plan to not use.

  4. hrlady Says:

    Hi Cris,
    In Connecticut, an employer is not required to provide its employees with vacation benefits wither paid or unpaid. If an employer does offer vacation benefits it must comply with its established policy or contract.
    In your question, your employer must have changed it rules regarding payout of unused vacation. Normally, the reason why an employer gives vacation is for the relaxation of employees and to attend the family matters. Employers would rather see employees take much needed vacation than to pay it out.
    It appears that you preferred the additional cash, however time off is always a great re-generator.
    Thank you for reading the

  5. Deb Says:

    Does CT have a law that requires the employer to carry over unused PTO days.
    I hear some states have this law is CT one of them?

  6. hrlady Says:

    Paid time off can include the employee’s sick or vacation accruals. CT doesn’t mandate vacation accrual carry over. However, employers covered under CT’s recently implemented paid sick leave law must allow workers to carry over up to forty unused accrued hours of paid sick leave at the end of each calendar year.

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