Human Resource Blog

Missouri Vacation Pay

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

	Compensation
Employee Payroll Action Form W-4 Employee Withholding Allowance Cert. Employee Payroll Status/Change Form Direct Deposit Form Total Compensation Summary

	Termination
Employee Warning Notice Employee Final Warning Notice Employee Resignation Form Exit Interview Questionnaire Separation Checklist

Can an employer in Missouri withhold payment for earned PTO upon termination, if the employee quits with no notice?

If the company has paid employees for accrued PTO in the past when they quit without notice, it would be good to pay this worker for all of his or her PTO, regardless of how frustrating or distasteful that might seem. The firm could face charges of illegal discrimination otherwise.

If the company has never done paid earned PTO in the past, then it need not start now. It could simply pay

There is no state law in Missouri that mandates employers to pay workers for accrued PTO at termination. Some states do have such laws, but even those only oblige employers to pay the part corresponding to vacation time. Accrued personal time or sick time need not be paid. States also usually let the employer decide what portion of the PTO is to be considered “earned vacation.”

Because consistency is important, if an employer in Missouri has paid earned vacation time at termination, it would be wise to do so now. A good approach would be to pay the earned time in this instance, then establish a policy, for the future, saying that employees who quit without notice will not receive any earned PTO.

If an employer is not consistent in payments, the company becomes vulnerable to charges of illegal discrimination. Workers have also successfully sued for the payment of accrued time in small claims court.

To clarify, assume Jane walks off the job for no apparent reason. This has never happened before. The company could refuse to pay her, essentially establishing a policy that workers who “abandon their posts” are not entitled to the payments.

Assume, however, that in the previous year Tom walked off without notice because his young daughter was in a serious accident. This was considered a family emergency and he received accrued time. Even though the cases are different, Jane could sue successfully, charging illegal discrimination based on gender. The cases appear to be quite different on the surface. Both employees quit without notice, however, and one of them was paid but one was not. As far as the law is concerned, both must be treated in the same fashion. JH