Paying off vacation at termination — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Paying off vacation at termination

Get PDF file

by on
in Human Resources

Q. We have a policy that vacation pay is not paid at termination unless the employee attends an exit interview at which he signs a release of any claims he may have. Is this permitted?

This creates a problem under Colorado law, which treats vacation pay as wages that must be paid at termination. Requiring an employee to sign a release to obtain something to which he or she is already legally entitled to receive is improper.

Furthermore, the release probably is not enforceable, because the employee has not received any benefit for signing it—he was already entitled to the vacation pay.

Leave a Comment


Previous post:

Next post: