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Aug20

Termination Question

If I terminate an employee for payroll falsification do they still receive pto hours? We are a small business ran by two people that have never been terminated an did not put any policy in place. I understand that I need to get something in place now. After adjusting hours this employee still owes us unless I take from the pto time. If I take from pto time then I feel I need to pay the employee the rest of what they accrued. Not really sure where to go with this one. Thank you for the help!

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.

Also, keep in mind that while FLSA does require employers to pay employees for all hours worked, you do not need for hours that were not actually worked, even if the employee added the additional hours to his timesheet. Therefore, if you know that an employee only worked 10 hours, instead of the 20 he put on his timesheet, you would only need to pay him for the 10 hours he actually worked. You do need to have accurate documentation of the hours actually worked and since this employee is being terminated due to falsification of time records, it is assumed that you do have adequate documentation to back you up.

This entry was posted on Wednesday, August 20th, 2014 at 6:51 am and is filed under
Compensation, Human Resources Management, Labor Laws, Termination.
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