If I quit before the end of the year, should I get a pro-rated amount of vacation pay?
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If I quit before the end of the year, should I get a pro-rated amount of vacation pay?
I live in IN but am moving. I’ll have 3 weeks of vacation coming January.
Asked on November 11, 2010 under Employment Labor Law, Indiana
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Although there is no law (state or federal) that mandates that a private sector employee to be paid vacation time, most employers do give employees such paid time paid (i.e. it is offered as a discretionary benefit). However, if an employer does decide to offer this benefit, most states do regulate how employers administer vacation time, including whether and how much employees must be paid at termination for accrued but unused vacation. Accordingly, since accrued vacation pay is considered a form of compensation an employee may be entitled to a pro rata share of his/her accrued vacation at the time of termination.
Note: If there is a company policy or employmen/uniont contract stipulating that certain conditions must be met before accrued vacation pay will be paid, these conditions must be met in order to receive accrued vacation pay. Vacation policies are generally left to the discretion of the employer.
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