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Aug20

Earned vacation deductions

Can you advise which states allow employers to deduct excess vacation from an employee’s final paycheck? Thank you

By “deduct excess vacation” I assume you mean which states do not require the payout of accrued but unused vacation time upon termination. Most states do not mandate the payout of accrued and unused vacation, but leave it up to employers to establish and follow their own policies. In the absence of a written policy, it is advised that the employer err on the side of the employee.

Some states do specifically require that accrued but unused vacation time be paid out at termination. This includes California, Illinois, Louisiana, Massachusetts, Montana, North Dakota (after 1 year of service), Nebraska, and Rhode Island (after 1 year of service).

This entry was posted on Wednesday, August 20th, 2014 at 4:17 pm and is filed under
Compensation, Human Resources Management, Labor Laws, Termination.
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