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Loss of Vacation Pay

louislouis 5 Posts
in Compensation Vote Up0Vote Down
In our handbook it states that if a person is termed for misconduct (in this case excessive tardies) that they will lose any accumulated vacation pay. Is this legal in Nevada?
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  • 3 Comments sorted by Votes Date Added
  • marcmarc 3,126 Posts
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    You do not have to pay for unused vacation pay as long as you treat everyone the same. Do you only apply this penalty to those who are termed for misconduct? And have you applied the same policy in other cases of misconduct? The key here is consistency.
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  • louislouis 5 Posts
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    We do apply this to only those termed for misconduct, which is what our handbook says. We do not do this for people quitting. If I can read behing the lines I am guessing this is wrong and we need to eliminate vacation for anyone leaving for any reason. Right?
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  • marcmarc 3,126 Posts
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    No, I don't think so.

    The Nevada laws are mostly silent in this area. You do not have to pay out unused vacation time in Nevada upon discontinuation of employment as long as you are following a consistent policy. I think you are OK with this policy because it is consistent for those who are terminated for misconduct and paid out for all others.

    Perhaps one of the Nevada lawyers that are forum members can provide some more guidance?
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