AZ Public Sector - Vacation Pay Out

I am in Arizona and we have a question regarding vacation pay out. In the private sector employers are not required by law to pay out accrued vacation time. But it it required in the public sector??


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  • dbaecker,

    Your first post! Welcome to the Forum. :welcome:

    As far as I know, there is no requirement in AZ for employers, public or private, to pay out accrued vacation time at termination. If an employer has a policy stating it will be paid or if it has been the employer's practice to do so, however, then the employer should treat the pay as wages and make a timely payout. Look at A.R.S. § 23-353.

    Also, use it lose it policies are allowed in AZ so, if you decide to implement a new use it or lose it policy, then consider phasing it in vs. unpleasantly surprising employees.

    Hope this helps.

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