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When employees resign — or are discharged — from a job, must the employer pay them for any accrued, unused vacation time?

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  • When employees resign — or are discharged — from a job, must the employer pay them for any accrued, unused vacation time?

Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. New York courts have held that an agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. [See Glenville Gage Company, Inc. v. Industrial Board of Appeals of the State of New York, Department of Labor, 70 AD2d 283 (3d Dept 1979) affd, 52 NY2d 777 (1980).] To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit.

IF… AND… THEN
An employee has earned vacation time There is no written forfeit policy The employer must pay the employee for the accrued vacation

October 2018

Tags: New York, Wage and Hour

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