Resignation Pro

Unused accrued vacation time - Resignation?

I have recently quit my job and need to know whether I should fight for my unused accrued vacation time or let it go. The problem is my company has a "use it or loose it" policy when it comes to vacation time. You have to use all your vacation each year. I gave my resignation letter on Dec. 21, 2008 my last day of employment was Jan 2nd. I tried to fight this over and over with HR - that I should receive my unused vacation time, but they said it is a new year and I was supposed to have used it all. If I set my last day to be Dec 31, 2008 I would have received my all my unused vacation time which is seven days. ( about $1300 ) My argument to them was that I decided when my last day was so I suggested to them to only give me 5 days paid vacation time since they had already paid me for two days in 2009. They didn't budge. I did some research and this is what I found. Should I take them to Small claims court? Or are they correct? Is it worth the chance? Electronic Data Systems Corp. v. Attorney General, 440 Mass. 1020, 798 N.E.2d 273 (2003). http://www.nelfonline.org/cases/EDS%20v%20Attorney%20General.htm This case raises the issue whether the Massachusetts Payment of Wages Act, G.L. c. 149, §148 (“Wage Act”), requires an employer to pay employees for unused vacation time upon termination, even when the employer’s written vacation policy expressly disclaims any such payments. The Superior Court held that the employee’s unused vacation time constitutes “wages” earned under the Wage Act, notwithstanding the employer’s published policy to the contrary. In its amicus brief representing the Associated Industries of Massachusetts and the Retailers Association of Massachusetts, NELF argues that the lower court decision is inconsistent with the plain language of the Wage Act, which posits the employment agreement as the controlling authority on the subject of vacation benefits. The Wage Act merely enforces an employer’s contractual obligation to pay an employee’s regular compensation during an authorized vacation leave. Requiring an employer to pay for unused vacation time when the employment agreement disavows any such payments would violate the Wage Act and impose an unpredictable financial burden on the employer that would be contrary to the bargain between the parties. Moreover, courts from many other jurisdictions applying similar state wage laws have reached the same conclusion: a terminated employee has no right to receive payment for unused vacation unless the employment agreement so provides. NELF also argues that there are compelling policy reasons to allow an employer to treat unused vacation time differently from used vacation time. A paid vacation allows the employee to rest and recuperate and provides the employer with the benefit of a rested employee. Requiring the employer to buy back unused vacation time serves no such mutually beneficial purposes, because the employer receives no consideration for financing a former employee’s free time. An employer is also better able to manage the predictable cost of employees’ scheduled vacations than the unpredictable cost of paying employees for unused vacation time. Oral argument is scheduled before the Supreme Judicial Court in October, 2003.

Public Comments

1. QUOTE: If I set my last day to be Dec 31, 2008 I would have received my all my unused vacation time which is seven days. ( about $1300 ) I think you failed to use your time before the year rolled over; policy states it was wiped out at that point; and that's all folks. Just my opinion.
2. They have to "buy" your vacation time from you in california. They may put restrictions on it. ie: you can only do it one time while you are employed, but they still have to let you do it. Usually they take a certain percentage from you as a fee. To answer your question, they do have to let you cash out your overtime hours, however, this is in california.