Am I required to pay vacation time to a departed employee?
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Am I required to pay vacation time to a departed employee?
I had a full-time employee from 2012-2014. She went part time in 2015 until 2017. There was no contract set forth. She now wants 26 days of vacation paid out from 2012-2014. Am I legally required to pay it?
Asked on February 21, 2017 under Employment Labor Law, Alabama
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
There is no federal law regarding paid vacation time upon termination, so each state is free to set its own laws on this. In AL, emploers are not required to pay departing workers for earned but unused vacation time. That having been said, if a company has a written policy guaranteeing payment of such time, then that policy must be followed. If the company has no such written policy, then they are not required to pay workers for their vacation time when they leave. That having been said, if there is a collective bargaining/union agreement or employment contract to the contrary, then that will control.
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