Payout upon Term - Which state to go by?

4526887

We have a traveling salesperson who reports to our corporate office, which is located in one state but he actually resides in a different state.  Which state law would you use when determining payout of vacation upon termination.  One state requires it be paid, the other does not.

Kibitzer

I think that it's the state where the employer is located unless there's a state where the employee has more significant contacts. As a traveling salesman, does he do the bulk of his work in the state where he or she resides or in a third state? Or is the work spread through several states with none being predominant. These are just a couple of things to think about. The safest course is to payout the vacation and avoid a potential law suit. 

countrygirl

This is a tough one. I would also keep in mind that in some states that don't have a law requiring you to pay out vacation, the courts have held that if you have a policy or practice of doing so, you have to pay it.

I would think that you should follow the law in the state where your company is. Does the salesperson report to a supervisor that works in your corporate office? Do his or her paychecks come from your office? Did he or she sign a contract or fill out pre-employment forms in your office? I would think about all of these things, or you can also call your state's Department of Labor. They are always a great resource on wage law.

Good luck!