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Mar22

no vacation policy

If my company does not have an employee hand book with anything in it regarding vacation policy at termination or in general and the company terminates an employee does the employee automatically have the right to receive payment for accrued vacation at said termination?

It depends what state you are in. The federal Fair Labor Standards Act (FLSA) does not require employers to provide vacation benefits, nor does it require those that do provide these benefits to pay out any accrued vacation time upon termination.

State law varies. Some consider accrued vacation to be a part of wages and as such, require this time to be paid upon termination. Other states allow individual employers to establish policies requiring certain conditions be met before vacation is paid out. And some states do not have any laws regarding this matter.

As with any other term or condition of employment, employers are always advised to establish written policies to avoid confusion and provide consistency. For more specific information, please re-post with your state.

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This entry was posted on Thursday, March 22nd, 2012 at 7:12 am and is filed under
Benefits, Human Resources Management, Labor Laws.
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