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About Thomas R. Ballas
Expertise
I will take questions about EEOC complaints, ADA, FMLA and most Human Resource issues. I am an expert in the Railway Labor Act and collective bargaining agreements.

Experience
I have 36 years experience in the rail industry, 16 as the lead company negotiator for all Section Six talks.

Education/Credentials
BA in Psychology, PHR and SPHR Certifications.

 
   

You are here:  Experts > Business > Corporate Law > Employment Law > vacation payout

Employment Law - vacation payout


Expert: Thomas R. Ballas - 6/29/2009

Question
Employees are currently paid out for all accrued vacation.  Effective 8/1/09 we are thinking about changing the policy to cap the payout at 160 hours.
Would we still be obligated to pay out all vacation that was accrued under the old policy (prior to 8/1/09). Once we change the policy we would cap all vacation that was accrued after 8/1/09?

Answer
Maceo:

It depends on what state you are in.  Look on your state's web site under employment to see if vacation must be paid out as wages.  It probably does, in which case you will have to pay out the excess of 160, before the new policy starts.

So, if someone has 180 hours under the old policy, and you start the new policy, you would have to pay them out the 20 hours, down to the new cap.

Tom Ballas

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