Accrued Vacation Time

[Chemba]

Hi,

I will be resigning from a private company in North Carolina next week and wanted to find out if I will be owed my accrued vacation. I have almost 6 weeks of accrued vacation.

Thank you!

[cbg]

In NC, that is a matter of company policy.

However, NC law is very slightly different than that of most company-policy states; the only other state I can think of that works like NC is NY. In NC and NY (there may be others, but these are the only two I can think of that work like this), accrued but unused vacation time is due on termination unless a written company policy specifies that it will not.

A few states, mine among them, require that it be paid out unconditionally; a few more do not require it at all. Most states require it only if company policy says it will. NC (and NY) require it unless company policy says it won't.

So you will have to look at your employee handbook and see what it says on the topic. If there's no notation that vacation will not be paid out, then it must be. If there's a notation that it will be paid out under x circumstances but not in y, then it only has to be paid out in x circumstances. If it says that it will not be paid out, then it needn't be.

[Chemba]

Thank you so much, cbg! I did review the company handbook and it stated that vacation would be paid upon termination of employment. I guess I was just unclear as to what exactly was covered under termination. For example, did termination mean just involuntary (i.e., fired) or voluntary as well?

It appears from your very helpful response that it covers both voluntary and involuntary and that I should be owed the vacation time. Is this correct?

Thank you again for your time, effort, and help... it is greatly appreciated!

[cbg]

Unless it specifically states that it will only be paid out under certain circumstances, it would have to be paid out regardless.

NC law makes it very clear that if the time is to be forfeited, the circumstances of the forfeiture must be spelled out.

[Chemba]

Thanks again, cbg! If I can bug you one last time (I promise), is there a web site or something you could direct me to so that I can familarize myself with it just in case?

Again, thanks for all of the help cbg. You've been a great resource!

[cbg]

The state DOL website is a good resource.

[Betty3]

Here is the NC statute re vacation pay:

95‑25.12. Vacation pay plans.
No employer is required to provide vacation pay plans for employees. However, if an employer provides these promised benefits for employees, the employer shall give all vacation time off or payment in lieu of time off in accordance with the company policy or practice. Employees shall be notified of any policy or practice which requires or results in loss or forfeiture of vacation time or pay. Employees not so notified are not subject to such loss or forfeiture.

[Chemba]

Thank you, Betty! I appreciate your time in helping me with this.

[Betty3]

You're quite welcome.

[Chemba]

Hi, I have a follow up question with regards to health insurance.

My new employer has a 30 day window before I can join their plan. Since I have 30 accrued vacation days, is it possible for me to stay on my previous employer's plan until the 30 day window is over?

I guess I'm asking this because it's not like you're not covered under an employer's health plan just because you're on vacation.

Thanks again for any insight.