Q: When employees resign — or are discharged — from a job, must the employer pay them for any accrued, unused
vacation time?
A: If an employee has earned vacation time, and there is no written forfeit policy, then an employer must pay for
unused time depends upon the terms of the vacation and/or resignation policy.
New York courts have held that an agreement to give benefits or wage supplements, like vacation, can specify
that employees lose accrued benefits under certain conditions. [See Glenville Gage Company, Inc. v. Industrial
Board of Appeals of the State of New York, Department of Labor, 70 AD2d 283 (3d Dept 1979) affd, 52 NY2d 777
(1980).] To be valid, the employer must have told employees, in writing, of the conditions that nullify the
benefit.
IF… AND… THEN
An employee has earned vacation time There is no written forfeit policy The employer must pay the employee
for the accrued vacation
