Once Again, Maryland Changes Opinion on Unused Vacation Pay
The change allows employers once again to decide whether or not to pay out unused vacation upon termination, dictated by each individual employer’s written leave policy. The policy must have been communicated to the employee at the time of hire.
If the employer does not have a written policy limiting compensation for accrued leave to a terminated employee, it must pay the departing employee the cash value of any earned but unused vacation leave, provided the leave was otherwise usable.
For more information and details about Maryland’s new regulation, please see: http://www.dllr.state.md.us
Also, as a reminder to Virginia employers, vacation payout is dictated by the guidelines the company has established in a contractual agreement or policy, or practiced consistently in the past. Employers in Washington, DC must pay out any accrued leave upon termination unless there is an expressed agreement or policy otherwise. |
In April the Chariot brought you the news that Maryland had changed its regulations, requiring the payout of unused vacation to terminating employees. Recently Maryland reversed this stance and amended its Wage Payment and Collection Law (Md. Code §§ 3-501et seq.) to restore the law to its pre-November 2007 state.| Issue 7 | July 2008 |
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