Vacation Question

Balloonman

Our policy is not to pay out vacation when employees leave our employment except if they are laid off for economic reasons, ie., not much work.

Our vacation is earned on the anniversary date. Our policy reads: "No compensation will be paid for vacation days earned but not taken at the time of termination of employment, whether the termination is voluntry or involuntary, except that any employee laid off for economic reasons shall be entitled to compensation for any vacation days earned but not taken."

I am in Missouri, does anyone see any problems with this?
DJ The Balloonman

Margaret Morford

Check your state law, but most states require that if it's earned, it must be paid upon termination. Wage and Hour usually sees it as compensation due to the employee.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Yahoo

I don't believe MO state law requires pay out of vacation time upon termination. We do as Margaret mentioned - pay out anything that is "earned & unused." Hope this helps!

Dutch2

I also am in Missouri. Do not know of any state law in Missouri regarding this matter, but I have always paid out all earned/unused vacation. To me it just seems like the right thing to do as they did "earn" the vacation time and did not have the opportunity to use it. We just add the unused vacation time to their last paycheck.
Good luck,
Dutch2