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Jul29

Vacation Time Payout if Employee Quits

I had an employee who started March 2, 2015. All employees get 2 weeks PTO. She quit without notice on July 27, 2015. She has already used 38 hours. Do I need to pay the remaining 42 hours since she hasn’t even been here 5 months?

There is no federal law regarding the administration of PTO benefits for private employers. Some states have adopted such laws. Please comment on this question with the state listed and we can research applicable state laws.

In general, most states that have laws regarding PTO benefits simply require the employer to abide by its own policies or established practices. Meaning, if you have a policy that entitles employees to receive their remaining PTO balance upon separation of employment, then you must obey your own policy.

Absent state law, a collective bargaining agreement or an employment contract stating otherwise, employers are permitted to grant or deny employees payment of unused PTO accruals upon separation at their discretion. It’s advisable for employers to adopt clear, easily understood PTO policies including whether unused time will be paid upon separation and any stipulations to such entitlements.

This entry was posted on Wednesday, July 29th, 2015 at 7:42 pm and is filed under
Benefits, Termination.
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