Posted on October 10, 2018 in Wage & Hour Violations

On behalf of Melehy & Associates LLC posted in wage & hour laws on Wednesday, October 10, 2018.

Does your former employer have to pay for unused vacation?

In this blog post, we will examine:

• D.C.’s and Maryland’s requirement that an employer pay for unused vacation or unused paid time off ("PTO") after an employee leaves the company;
• How employers try to avoid paying employees for unused PTO or vacation; and
• What you can do about it.

What the law says

If you are thinking about leaving your place of employment (or have already left), you are probably wondering if you will be paid for your unused PTO or vacation time.

In D.C. and Maryland, the law requires employers to pay for unused PTO or vacation when the employee leaves. Failure to do so can result in enhanced damages.

There is an exception to the law, however. Employers do not have to pay for time off if the employer has a written policy that states that it does not pay for unused leave.

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