Paid Leave

pattycake

Our policy states that an employee earns a certain number of days per month, these are called Earned Leave Time (ELT). We don't distinguish between sick, vacation, personal, etc. All days are called ELT. Our policy also states that if an employee leaves employment that "ELT benefits that are due and payable at termination will be paid at half-rate." Is there any labor law that would obligate us to pay full rate for these "earned" days?

Also, management is considering changing this policy to allow employees who are terminated by the agency, (not by the employee's choice, such as a layoff or reduction in staff),to get paid full rate for their days and employees who voluntarily terminate to only get paid at half rate. Any legal issues here?

marc

These questions come down to State law. In Nevada, you do not have to pay out unused vacation, unless it is your company policy to do so. So what you do for one, you do for all. Check your state law.

And by the way, the title of your leave is "Earned" Leave time, if it gets reduced, it does not really sound like it is earned.

Hunter1

Have you considered what to do for employees terminated for cause? Are you planning on paying them in full for Earned Leave Time, and not paying someone who leaves on good terms in full? Perhaps you should leave the pay-out of Earned leave alone and institute some type of severance for RIFs and lay-offs.

In general since you don't have to provide any type of Earned Leave, you don't have to pay it out any all, but may have to hold to your policy for all once it is established.