Paying out accrued sick and vacation time after demotion
drehil
207 Posts
[font size="1" color="#FF0000"]LAST EDITED ON 02-27-07 AT 07:44AM (CST)[/font][br][br]We just demoted an employee (my first experience with a demotion) and that employee had a question I can't answer without researching. So I am looking for your help. The ee questioned the rate of pay that would be paid out for the accrued sick and vacation time the ee has. The ee accrued the time while working at the higher position and rate of pay, but will be using it at the lower position and rate of pay. What pay rate should this vacation and sick time be paid at if she uses it from this point forward, the old rate or the new rate of pay? Is there a law that would govern this? I could be wrong but I would say the new rate of pay but have nothing to back that decision. Thanks in advance.
Comments
Good luck.
Upon termination, we pay out unused vacation pay at whatever rate of pay they had at that time. It does not matter if it was higher or lower than when they earned the time.
I look at it as though they are earning time off, not dollars.
Make sense?
They are earning Leave HOURS not a set rate of pay.