Vacation Policy Cannot Save Massachusetts Employers From Paying Accrued, Unused Vacation Time Upon Termination

In June 2009, the Massachusetts Supreme Judicial Court held that an employer could not rely on its vacation policy to avoid paying involuntarily terminated employees for unused vacation time. The decision confirmed a long-standing interpretation of the Wage Act by the Massachusetts Attorney General, and serves as a lesson to employers who mistakenly believe they can avoid paying accrued but unused vacation time upon termination merely by creating a policy that purports to give them authority to do just that.

Link to the full article below.

http://www.mondaq.com/article.asp?articleid=84318&email_access=on

W. Garnett & Associates, HR Consultant

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