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Jun26

Vacaton Pay on resignation

Are we required to pay employees who quit vacation pay that they have aquired.
We have no written policy on this.
We have paid people we laid off vacation pay.
This is the first time we have had people quit.
from what I can see we are not required to pay them.

The U.S. Department of Labor does not require payment for time not worked, such as vacation. Vacation benefits are a matter of agreement between employer and employee. Some states regulate that accrued vacation must be paid out on termination (please check your state law).

The fact that you agree to have employees earn and/or accrue vacation is a matter of practice. In lieu of any formal policy, stating payout of vacation or no payout, the employee accrued the time as a matter of agreement. Any formal policy established for payout of vacation needs to be administered consistently.

Accrued vacation payout on termination is suggested.

This entry was posted on Tuesday, June 26th, 2012 at 10:49 am and is filed under
Human Resources Management.
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