Termination and Pal time payout

MedHRpro

Well here I am again doubting my knowledge, so I'm coming to the more senior pros for help. I have recently began working with a medical facility. We had a voluntary resignation (mutually agreed upon)during a 90 day introductory period. The previous policy has always been you begin to accrue vacation time on your hire date, but are not eligible to take until after 6 months. Thats fine. But the policy also states that if they quit without notice or leave within that first 6 months, they are not paid their accured vacation time (we call it Pal time). Now it has always been my understanding of FLSA, that time accrued for vacation is owed to the employee, regardless of the circumstances. Can someone help me, and where is that web site that has the actual law? THANKS!

Don D

There is no federal law addressing vacation. Some employers have earned vacation, some accrual systems and some call the vacation a gift from the employer that is neither earned nor accrued. Vacation laws would be state laws. Check your Employment Security system or Labor Department if your state has a formal one. In this state, the promise of vacation accrual and vacation pay is considered an implied contract and is due unless your policy has rules such as 'must give one week's notice' etc. It sounds to me like your policy was crafted to suggest that prior to 6 months the employee had no vacation. But, maybe not. Look at it carefully and if you find that the ee did begin accruing on day one, followed the resignation procedures and left with untaken leave, and you have no policy further addressing the matter, I would certainly pay it.

MedHRpro

Thanks Don for your wisdom. Don't know what I would do without this forum. You, as always, are very appreciated.