Benefits paid/not paid at termination

dbranch · October 2009

In checking, I can find nothing that states employers must pay vacation balances to employees who are terminated for cause or who quit without giving notice. Can an employer elect to not pay vacation balances to employees who do not leave the company in good standing?

ACU Frank · October 2009

It's a state-by-state thing.

NaeNae55 · October 2009

Also recommended that you check your own organizations employee policy manual. If it says you pay, and you elect not to, you could be opening up an expensive can of worms.

If your policy doesn't say anything about it, I would update it to include this (according to your state laws and your own organization's culture.)

Good luck!

Brad Forrister · October 2009

As Frank points out, this is an area with a lot of variation from state to state. Most of that has to do with whether state law requires that you pay out vacation pay in a final paycheck. Our 50 Employment Laws in 50 States manual (also available on HRLaws under the Manuals section) has a chart that details where the various states come down. (It's Chart 30.)

In most states, if you're required to pay it out, you can't make an exception for people who quit without notice or are fired. If you're not required to pay it out, you could adopt such a policy, but I'd check with legal counsel in your state.

ACU Frank · October 2009

I could have been more specific but DBranch doesn't list a location, so I couldn't tell what state we were talking about. Brad points to an excellent resource, though - I've used it a few times to advise friends or co-workers about other states' requirements.

System · October 2009

In case you want to check out the 50 Employment Laws in 50 States Manuals, you can find it at [url]http://www.hrhero.com/50x50?FORUM[/url]

Benefits paid/not paid at termination

Comments