Paying Vacation When an EE Resigns

GLC · October 2004

Someone recently told me that the law had changed regarding paying employees any unused vacation time when they resign. I have not read that. Is this true? We have offices in Kentucky and Indiana.

szemcumo · October 2004

Not sure of the laws but we pay for any unused/accrued vacation hours but NOT personal hours.

Dutch2 · October 2004

Same here. We pay for any unused vacation that they have, but not sick time. We also do not pay for any vacation that they are earning for next year, only what they are eligible for in the year that they terminate employement.

pork1 · October 2004

GLC: We probably should wait for our legal experts to come on to tell us if the law has changed. We pay both vacation and sick time awarded but not used to all out-going employees!
PORK

zen · October 2004

We pay employees for any leave time that they have accrued - Our leave time is not separated into personal days, vacation, or sick days, it's just PTO, to be used as they deem appropriate.

dchr9203 · October 2004

Some states do require that you pay benefit time at termination. You would have to look at each state's DOL site to determine. In our case, employees accrue (and we "bank) PTO, and unused leave is paid at termination. My previous employer accrued & banked vacation, and accrued only sick time. Vacation was payable at term sick time was not.

Don D · October 2004

My state may be the only one without a State Department of Labor (Thank God and Greyhound). We pay out untaken vacation time, but certainly not sick leave. The state employee gets both and can count tons of accrued days toward their retirement, as I did.

Paying Vacation When an EE Resigns

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