Employees who quit their jobs are entitled to receive compensation for accrued vacation time in approximately half of 50 states. In states where the law does not address compensation for unused vacation time, employers with a policy or practice of paying vacation time must follow it, according to Nolo.Continue Reading
The law does not require employers to provide vacation time to employees. However, many employers offer vacation time as a fringe benefit but only to full-time employees and not part-time workers. Nolo indicates that 91 percent of full-time employees receive some paid vacation, but only 37 percent of part-time employees receive this benefit.
While vacation time is generally a vested benefit, sick leave is not. If the employee has sick leave at the end of his employment, he is not likely to receive compensation for the time, explains Scott Cole & Associates. The employee handbook may address the issue of sick leave.
When an employee quits his job, state law governs the time in which the employer must provide the final paycheck. Generally, if an employee gives at least 72 hours notice, the paycheck must be ready at the end of his final day on the job, notes Scott Cole & Associates. If the employer owes the employee vacation time, it must include the compensation in the final check.Learn more about HR