Employment Law -- Employee
Is It Permissible For An Employer To Adopt Personnel Policies Which Provide That No Payment Will Be Made Upon Cessation Of Employment (Whether By Retirement, Resignation, Or Discharge) For Unused Sick Days, Personal Days, And Vacation Days? If So, Can Such A Policy Provide That No Such Payment Will Be Made If An Employee Resigns Without Giving At Least Ten (10) Days' Written Notice Or Before His Or Her Anniversary Date?
With regard to unused sick days and personal days, an employer may provide that these will not be paid upon cessation of employment. An employer may also provide that no such payment will be made if an employee resigns without giving at least ten (10) days’ written notice or before his or her anniversary date. With regard to unused vacation days, an employer may not provide that this will not be paid upon cessation of employment if the employee has earned the vacation according to the time frame set forth in the employer’s policy. This would allow an employer to provide that vacation pay will not be earned (or paid) before an employee’s anniversary date