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Unused sick time/vacation time

KenjohnnieKenjohnnie 7 Posts
in HR & Employment Law Vote Up0Vote Down
Are employers obligated to pay unused sick time and vacation time to any employee who leaves without any notice?
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  • pork1pork1 1,054 Posts
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    Kenjohnnie: It depends on how your policy is written. Since ours does say we will pay out both upon departure. We pay both out. I attempted to change the paragraph to read that we would pay out only the vacation time with signed and timely resignation. Owners did not want the trouble of defending the issue and I was directed to leave both as they were! You would also need to check your individual state law on the issue, some states do mandate vacation to be paid out as already awarded. Our attorney feels it would be OK, not to also include vacation time that is accurring but has not been awarded. An individual must work through an anniversary date before he/she departs in order for the vacation time to be awarded.

    This is only a real big issue when someone pulls a fast leap on the company.

    PORK

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  • HRCalicoHRCalico 582 Posts
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    Pork said it just as I would have. Perhaps Gene or someone else from TN will speak up as to state law, otherwise, it is as your policy is written. My experience has been that few employers pay out sick time, but most pay out vacation. Pork is also right in that if it has accumulated but not yet been awarded, it usually isn't paid. Unless, that is, you are speaking of California. All bets are off there.
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  • WhirlwindWhirlwind 882 Posts
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    Our policy, by state law, is that accrued, unused vacation time is paid out if the person has had six months of service, regardless of whether they left with adequate notice or not. They accrue vacation leave from Day One, but cannot use it for the first six months, nor can they be paid for upon departure. In no instance is unused sick leave paid out.
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  • POPEYEPOPEYE 958 Posts
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    From the Tenn. DOL website 50-2-103:

    ) For the purposes of this subsection, the final wages of an employee who quits or is discharged shall include any vacation pay or other compensatory time that is owed to the employee by virtue of company policy or labor agreement.

    If your EEs "accrue" sick time per policy, it would be considered compensatory time and must be paid upon termination for any reason.
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