Entitlement to accrued vacation time

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Entitlement to accrued vacation time

My previous employer in Maryland was acquired by a corporate entity based in Texas. I recently resigned my position two weeks notice, when I received my final paycheck I was only paid for the vacation time that was accrued and unused in this calendar year. I had 40 hours that was accrued from 2018 that was unused and carried over per company policy to 2019. Their response ‘Employees who voluntarily or involuntarily terminate employment, will be paid for unused PTO time that has accrued during the calendar year of the termination, according to company policy’. Is this legally acceptable in the State of Maryland? Thank you for your time and advice.

Asked on April 8, 2019 under Employment Labor Law, Maryland

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

In most states, including MD, an employer can set their own policy regarding paying out earned but unsued vacation time upon a worker's departure. So, as long as your employer is following its own policy, you have no claim here. That is unless there exists a union agreement or employment contract to the contrary. 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Maryland allows employers to set their own policies about the payment of vacation time at termination of employment (whether by being fired or resigning). A company is MD is allowed to have a policy that unused vacation time is not paid at all, or limiting (as your company does) how much is paid. Your employer is allowd to have this policy.


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