Vacation Pay Upon Termination #2
QUESTION: If our employee handbook states the employee is to give two weeks notice prior to resignation but instead gives less than the stated notice, do we have to pay them vacation pay in their final paycheck? Thank you.
FROM: DIANE
INDUSTRY: NON-PROFIT
RESPONSE:
Diane,
In the state of Florida, you are not required to pay out vacation when someone leaves your company. However, if your policy is silent on the issue, it would be advisable to pay for the unused vacation.
Many states have laws that require an employer to pay for unused vacation upon termination unless the company has a policy stating otherwise. Others require the employer to pay unused vacation regardless of the reason.
Update your handbook in the termination section to state something to the effect of, “It is common industry practice to give two weeks notice of your desire to leave Community Connections. Failure to give two weeks notice of your intention to leave the company will result in forfeiture of any unused vacation.” You may also want to add that leaving the company without notice is very disruptive to the organization and is an unprofessional practice.
Be careful not to overstep the “employment at will” doctrine.
Thanks for asking Bob.