Accrued vacation pay after termination

[Guest Melanie A]

When an employee severs employment, is he entitled to receive compensation for his earned vacation time? Even if the time would not be available to be used by the employee until the following calendar year? If the answers are yes, I would like to have know how to document the legal rights of the employee.

Thanks

[Sheila K]

Melanie:

My understanding is that the granting of vacation and/or sick leave is a voluntary benefit granted by the employer. How they apply terms for separation is up to them. In our proposed PTO plan, we will be paying out a reduced portion of the vacation already accrued.

In the past, I worked for an employer who "credited" the vacation account at the beginning of each year. If you terminated before you had "earned" the vacation (according to a pro-rata schedule) you were not compensated for it and had to "pay back" any unearned, used vacation pay.

Good luck.

Sheila K

[KIP KRAUS]

Melanie:

Unles the employee lives in a state where it is required by law to pay accured vacation at termination of employment, the policy to pay or not to pay is up to the employer. I'm not aware of any state that requires payment.

This employee may be out of luck.

[Guest Peg H]

In California, once an employee has accrued a benefit, it must be paid upon termination. So in the example you gave, where the employee accrued the time but hadn't "earned" it until next year, the employee WOULD be due compensation in California.

Hope that helps... everything seems to always be different in Calif!

[Guest Melanie A]

Thanks for the advice so far!

I did check state regulations (in Illinois) and it appears the Department of Labor enforces a Fair Wage and Compensation Act that, like in California says if the company policy is to offer the benefit of paid vacation, and time is accrued but not used at time of separation, whatever the terms, the employee is due pay at the current rate for that time.

It also looks like if the company refuses to do so, as they have in the past with co-workers, a claim can be filed witht he Dep of Labor and they will investigate on behalf of the employee(s). Anyone have any experience with that? I am wondering how far they would go for something that wouldn't add up to a huge sum.