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  1. #1
    Join Date
    Mar 2014
    Posts
    2

    Default Does Your Employer Have to Pay Your Accrued Vacation When You Quit

    My question involves employment and labor law for the state of: Mississippi

    Ok, long story short. I work for a large US retail corporation and last year they changed the vacation benefits policy. On the old policy, an hourly employee would accrue vacation hours weekly according to how many hours they worked. On the new policy, the company front loads a set amount of hours at the beginning of the year based upon full time or part time status. So basically, we get less vacation hours since we get a set amount which doesn't account for overtime for full time employees or working over 20 hours for part time employees.

    Recently, I found new employment that starts in approx. 60 days. I have not notified or let anyone at work know that I'm leaving. I have used almost all of my 3 weeks vacation time already and never anticipated any problems. However, another employee just turned in their 2 week notice and wanted to use some vacation time and was told that the vacation time is now front loaded at the beginning of the year and hasn't been earned yet, and that any vacation time used would be deducted from their last paycheck. None of this was told to the employees in the HR meeting about the new policies last year.

    Now, since I have used almost all of my vacation time up and I am moving on to another job. Can they keep my last check? What if I don't give them notice and just start my new job after my last check direct deposits? If I did that, could my employer "somehow" withdraw funds from my direct deposit account? Would they have any legal recourse against me if I just quit after my last check was deposited? Since they give me and let me use my vacation hours up front, should I have a reasonable expectation to be able to use them without owing them back?

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Resignation and Vacation Hours

    Vaation is a gift and not subject to gov't labor laws. As long as they apply policies equally, they can apply them.

  3. #3
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Resignation and Vacation Hours

    They cannot keep your last check. They must pay you at least minimum wage times hours worked.

    The regulations under which your employer can reverse your direct deposit are very rigid. They cannot withdraw money from your account. For a very, very brief time (I believe it's 5 days) they can completely reverse an overpaid deposit but it must be replaced with the corrected amount. It's all or nothing - they either reverse the entire amount or they don't reverse any of it; they can't reverse only part of it. They could sue you for any overpayment; it's anyone's guess whether you'd win or not. While I might think and you might that you have a reasonable expectation of using your vacation days without paying any excess back, the state of Mississippi has perhaps fewer employee protections than any other state in the US and there isn't any employment law that's going to protect you.

    Contract law is a different story, but you would have to have a Mississippi attorney review the policies to determine if they constitute a contract and if so, what is contracted.

  4. #4
    Join Date
    Mar 2014
    Posts
    2

    Default Re: Resignation and Vacation Hours

    Thanks CBG. Would they have to just pay me minimum wage times worked hours on my last check or my actual hourly wage, which is much higher. I guess it's the fact that they touted this new system as a good thing since we could take our vacation whenever we wanted to. Now, they want to chargeback something that they "give" to you. I know that I can't afford to let them screw me over for almost $2100

    Here's what I'm thinking the best course of action is. Slowly cash out my remaining vacation time. Set up some type of prepaid card for direct deposit for my last couple checks. Then when my check hits, transfer funds to another account and don't go back to that job. I mean what would you do in this situation?

    Also, I'm not sure what you mean by your contract law comment. I'm hourly employee and not under contract.

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Resignation and Vacation Hours

    Under wage and hour law, you are never due more than minimum wage times hours worked and overtime if you work it. Not your regular hourly wage - minimum wage. Neither the Feds nor the state of Mississippi is going to force your employer to pay more than that. There are states that would, but Mississippi isn't one of them.

    In some states, under contract law the fact that your employer has been paying you x establishes a contract to continue paying x. But only a Mississippi attorney can tell you if that is the case for you.

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