Vacation Time Taken/not paid out

[thelarster]

I currently work for a company, our head quarters are in Reston, VA but I work in the Saginaw, MI office.

They recently changed our vacation policy saying that we have to use all of our hours that we carry over from 2002 by March 2003. They said if we do not use these hours we will not get a check even though they said Michigan is a 'payout' state, we will just lose the hours. Can they do this or do they have to pay us for the unused vacation hours?

Thanks for any advice.

 

[Beth3]

My source shows that earned but unused vacation must be paid out upon termination in MI but doesn't say anything about any in-service requirements that unused vacation at year-end must be paid out or carried over.

Perhaps cbg will clarify for us but chances are your employer may change their policy for current employees.

 

[cbg]

It is true that the majority of states which require payout on termination, also forbid the use of use-it-or-lose-it policies, which would imply that accrued but unused vacation time must be carried over from year to year.

However, it is also true that I cannot find such a reference in the Michigan law specificially. It is also true that Michigan gives the employer the freedom to comply with its own written policy.

In view of these contradictory implications, I suggest contacting the MI DOL to inquire as to how they would interpret the company's new policy.

 

[firemanup]

Which states require payout upon termination?

Jason

 

[Beth3]

Planning on relocating?

Rather than my listing the requirements of all 50 States which I just don't have time to do, how about you post back and indicate which State or States in particular you're curious about?

 

[AllDWay]

TEXAS - If you have accrued vacation time should you get paid for it when you leave the company or when terminated?

 

[Beth3]

Yes. If your employer chooses to have a policy which provides paid vacations (which is their choice), then earned but unused vacation at the time of separation must be paid out.