Is my employer required to pay out my remaining paid time off at separation?
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Is my employer required to pay out my remaining paid time off at separation?
I entered a written and signed work agreement with my employer stating my benefits and work schedule. She offered 7 paid days off for the full year. Since she has decided to let me go prior to the end of the full year and before I have had the opportunity to use my full 7 paid days off, is she required to pay me out for them upon my termination? There was no clarifying what would happen to those days and payment upon termination in the contact, only that we agreed the number of days and the amount of time full year.
Asked on June 22, 2019 under Employment Labor Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Your state (Oregon) does not require the payment of earned but unused vacation days on termination of employment unless there was a written agreeement/contract or established policy that they would be paid when employment ends. In the absence of such a policy or agreement, there is no need to pay them out.
Also, even if there had been a policy or agreement to pay them on termination, days are accrued pro rata over the year, not all at once. If you were hired in April, for example, and let go in June, you were only there for 2/12ths of a year (2 months out of 12) and would only have earned (and so would be paid) only 2/12sh or 1/6th of your days, or essentially one day in this example.
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