›

Payout upon Term - Which state to go by?

45268874526887 1 Post
in Benefits & Leave Vote Up0Vote Down
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.
Share on Facebook Share on Twitter

Comments

  • 2 Comments sorted by Votes Date Added
  • KibitzerKibitzer 20 Posts
    PMVote Up0Vote Down
    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. 
    Share on Facebook Share on Twitter
  • countrygirlcountrygirl 83 Posts
    PMVote Up0Vote Down

    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!

    Share on Facebook Share on Twitter
Sign In or Register to comment.