Vacation Pay Upon Termination #1
Question: If an exempt employee is terminated (voluntary or involuntary), is the Employer required to pay out any unused PTO accrual on his/her last check?
From: Lou
INDUSTRY: UNKNOWN
RESPONSE:
Lou,
I see that your telephone number area code is 305 which means that you are in South Florida. If the employee in question is also in Florida, then the answer is no- you do not have to pay out unused PTO. However, it is also a good idea to have this policy in writing in a handbook or similar document to avoid any confusion on this.
If the employee is in another state, I would have to know which state the employee was employed to determine if it is required to pay out unused PTO. Some states require that unused Paid Time Off and/or vacation be paid to the employee upon termination. Other states require such payments unless the company has a specific policy stating that unused PTO/vacation will not be paid upon termination.
I hope this helps. Let me know if you have additional questions.
Thanks for Asking Bob