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Jul02

Vacation payout upon termination in NY State

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As employers, are we  required to pay out vacation upon termination in the State of New York if we state in the handbook that we do not?

No, you are not. According to the New York State Department of Labor, an employer is not obligated to pay unused vacation upon termination if the employee was informed in writing, ahead of time, that it would be withheld under certain conditions. Having a policy of not paying vacation upon termination in an employee handbook would certainly qualify.

In New York, if an employee has vacation time, and there is no written policy stating that it will be forfeit under certain circumstances, then the employer must pay it. For more on this topic, go to http://www.labor.state.ny.us/workerprotection/laborstandards/faq.shtm#10

This entry was posted on Wednesday, July 2nd, 2008 at 7:46 am and is filed under
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