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About Shirley McAllister, CPP, PHR
Expertise
I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience
25 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association)

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

 
   

You are here:  Experts > Business > Corporate Law > Employment Law > Vacation Pay out after termination

Employment Law - Vacation Pay out after termination


Expert: Shirley McAllister, CPP, PHR - 7/1/2009

Question
QUESTION: Hi Shirley,
I have recently been let go from my job in Wisconsin.  I had 131 hours of
unused vacation time.  I did received a severance package but in made no
reference to my vacation pay.  The company is saying that they don't owe me
my vacation pay because I was employed for less that 1 year (51 weeks and 1
day).  The company is owed by a group out of Minnesota and they say that
their employee handbook does not require that they pay me my vacation.  Are  
they correct?  Please advise.

ANSWER: Vacation is considered a fringe benefit and is not governed by any laws in the state of Wisconsin.  Vacation is given to the employees by the company and is regulated by the company.

Employers are not required by Wisconsin law to grant vacations to their workers, whether with pay or without. Such matters are determined entirely by written or unwritten agreements between the employer and the employee. However, where such benefits have been agreed upon, the department may take action as part of a wage claim.

If the company policy and the handbook says that it is not paid than it is not paid, if the company policy and the handbook says it is paid than it must be paid. The company does not have to pay vacation pay, but they must follow their rules and if they promise it will be paid upon termination it must be paid. They can have rules that say you must first work a year before you are eligible for vacation. At my company you have to work a full year to be eligible.

Shirley



---------- FOLLOW-UP ----------

QUESTION: Hi Shirley,
Thank you for the response.  The company did recently pay out vacation to an
employee how had over 15 years of service.  When I started they gave me 2
weeks of vacation for the first 6 months and then starting January 1, 2009 I
would receive 3 weeks of vacation annually.  So with that said - can they
decide to not follow past practice just because I was employed for less than 1
year?

Answer
Yes they can if their handbook says you must be there a year in order to be paid out vacation pay.

In our company it is that way. If you quit before a year you are not paid out vacation pay because our handbook says that you must be employed a year to earn vacation time.

They are legally able to put a time limit on the vacation pay so they are not paying out to those employees that do not stay with the company.

Shirley

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