accrued vacation pay and unemployment
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
accrued vacation pay and unemployment
I was recently displaced at my job and had to file for social security early. I was paid accrued vacation pay of 435 hours in a lump sum for vacation I had not taken for several years. I had to submit a Form 960 from my employer to the Social Security Administration to show this lump sum payment was for wages earned in a prior year so it would not affect my social security payments. Now I can still draw unemployment but the unemployment administration is telling me that I can’t draw for 3 months since they are taking my hourly salary and dividing it into this lump sum vacation payout since they consider it current wages paid. It that correct. How can the unemployment administration consider accrued vacation pay current wages and social security consider it prior wages?
Asked on September 13, 2016 under Employment Labor Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
I agree it's unfair, but it's legal: any post-employment payments from your employer, including accrued vacation and sick leave, but also including severance (if any is offered) is treated as current wages and delays eligibilty for unemployment benefits. The policy reason is probably to prevent people from getting money from the taxpayers while getting a large payout from their employer, and so effectively "double dipping." A legal justification would be that if you were to take your vacaton or sick leave, you would be paid out over time: essentially, paid time off is the right to be paid for days when not working, along your normal payroll schedule. Treating as current wages is essentially treating it the way it is intended to be treated.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.