Vacation pay in Iowa

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Vacation pay in Iowa

I live in Iowa. The company I worked for closed
its doors without notice. Do they have to pay
me for my unused vacation time?

Asked on April 1, 2017 under Employment Labor Law, Iowa

Answers:

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

Answered 4 years ago | Contributor

In IA, employers are not required to provide workers with vacation benefits, either paid or unpaid. However, it can choose to voluntarily choose do so. To the extent that it does, it must comply with the terms of its own established company policy or any applicable employment contract/union agreement. Accordingly, only if the employer has a policy, contract or agreement requiring the payment of earned vacation time upon an employee's separation must it provide it. In other words, as a general rule, a departing worker is not automatically entitled to pay for earned but unused vacation time.

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

Answered 4 years ago | Contributor

In IA, employers are not required to provide workers with vacation benefits, either paid or unpaid. However, it can choose to voluntarily choose do so. To the extent that it does, it must comply with the terms of its own established company policy or any applicable employment contract/union agreement. Accordingly, only if the employer has a policy, contract or agreement requiring the payment of earned vacation time upon an employee's separation must it provide it. In other words, as a general rule, a departing worker is not automatically entitled to pay for earned but unused vacation time.


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