Unused vacation payout after resignation in Delaware?

If an employee gives proper notice in Delaware, can we deny him already earned vacation time payout?

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  • Good morning, Dave, and welcome to the forum!

    In Delaware, the important aspect of this situation is not as much whether the employee gave proper notice, but how your company's vacation policy is worded/structured.

    No employer is required, by Delaware law, to provide vacation; however, once a private employer assures or promises it (whether in an employee handbook, oral statement, or established and common practice), then the employer must provide that vacation.

    As is the case in many states, Delaware interprets vacation time/pay as a benefit or wage supplement. What this means is that if an employer has agreed to pay for or provide vacation time, then the right to collect that benefit vests once the required work/services are rendered according to the company's vacation policy.

    So if your company provides one day of paid vacation per pay period, then the employee's right to that vacation time (or the equivalent payout on termination) vests as soon as the employee has completed work for that pay period.

    In sum, if the employee has already performed the work to earn the vacation time, then equivalent wages should be paid out upon termination.

    I hope this information is helpful!

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