• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

MD - When must accrued vacation be paid?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

swalsh411

Senior Member
What is the name of your state (only U.S. law)? MD

Is there a law which states that an employer must pay out accrued vacation to a terminated employee on the final pay check for hours worked? Or is it legal to pay accrued vacation on the next scheduled pay check after that? I think it's OK to wait one pay period but a co-worker is very insistent that a law exists saying it must be on the last check for time worked. (although when asked to cite this law they were unable to do so). Everything I have found online says you must pay out vacation if the policy is to pay it out but it does not state it must be on the final check for time worked.

The company policy simply says it will be paid out. It does not say when.
 


mlane58

Senior Member
What is the name of your state (only U.S. law)? MD

Is there a law which states that an employer must pay out accrued vacation to a terminated employee on the final pay check for hours worked? Or is it legal to pay accrued vacation on the next scheduled pay check after that? I think it's OK to wait one pay period but a co-worker is very insistent that a law exists saying it must be on the last check for time worked. (although when asked to cite this law they were unable to do so). Everything I have found online says you must pay out vacation if the policy is to pay it out but it does not state it must be on the final check for time worked.

The company policy simply says it will be paid out. It does not say when.
Under Maryland law, any monies due are paid out at the next payday. Vacation as you know or should know is up to what your company's policy states.
 

swalsh411

Senior Member
I am aware that pay for time worked is due on the next scheduled pay date. The policy says vacation time will be paid out at termination but doesn't specifically say it will be on the last check. Can you cite the law which states that vacation pay is due on the same check as the last check for time worked? Or does it not exist?
 

mlane58

Senior Member
I am aware that pay for time worked is due on the next scheduled pay date. The policy says vacation time will be paid out at termination but doesn't specifically say it will be on the last check. Can you cite the law which states that vacation pay is due on the same check as the last check for time worked? Or does it not exist?
Maryland law states;
Each employer shall pay an employee, or the authorized representative of an employee, all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not terminated.
And since vacation pay is considered wages (in every state I have done buisness with)I would bet that Maryland considers it wages as well.
 

swalsh411

Senior Member
Maryland law states;And since vacation pay is considered wages (in every state I have done buisness with)I would bet that Maryland considers it wages as well.

Did you catch the the "for work that the employee performed" part? That's why I don't think the requirement applies to non-wage payments like accrued vacation.

I am not trying to argue here but if there isn't a requirement to pay it out on the last check, then there isn't a requirement.
 

mlane58

Senior Member
Did you catch the the "for work that the employee performed" part? That's why I don't think the requirement applies to non-wage payments like accrued vacation.

I am not trying to argue here but if there isn't a requirement to pay it out on the last check, then there isn't a requirement.
Geez, you asked a question and I gave my opinon. Under Maryland law I just read states that accrued benefits such as vacation are "wages" under Maryland law.
 

LdiJ

Senior Member
Geez, you asked a question and I gave my opinon. Under Maryland law I just read states that accrued benefits such as vacation are "wages" under Maryland law.

They are "wages" under all state laws I am familiar with. They are taxable and SS and Medicare taxes are withheld from them. If they were not wages/earned income then SS and Medicare could not be withheld.
 

mlane58

Senior Member
They are "wages" under all state laws I am familiar with. They are taxable and SS and Medicare taxes are withheld from them. If they were not wages/earned income then SS and Medicare could not be withheld.
I know and said that in the post before this one.
 

The Occultist

Senior Member
Geez, you asked a question and I gave my opinon. Under Maryland law I just read states that accrued benefits such as vacation are "wages" under Maryland law.

If all you are doing is offering an opinion (meaning, in MY opinion, that you are merely guessing), then you don't have a huge right to get upset when somebody doesn't buy it.
 

cbg

I'm a Northern Girl
I have an idea. I'm sure someone will find something wrong with it, but it seems to me that it would resolve the question.

Why doesn't someone who thinks this is an important enough issue to argue about pick up the phone, call the state DOL, and ask them?
 

mlane58

Senior Member
If all you are doing is offering an opinion (meaning, in MY opinion, that you are merely guessing), then you don't have a huge right to get upset when somebody doesn't buy it.
Mine was a professional opinon based on professional experience. What was your rant? wasn't real substantial now was it?
 

swalsh411

Senior Member
I have an email into the DLLR. They are probably going to come back with something about how they cannot advise me as to this specific issue and to talk to an attorney. Thanks for the replies.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top