In an attempt to help employers get a handle on what and when to pay departing employees, here's a state-by-state summary of vacation pay requirements, as well as a chart at the end of the report that summarizes the timing of each state's final pay laws.
Some states don't address the issue of vacation pay upon termination or dictate the timing of final pay. These states are so noted. A few states come right out and say that, upon termination, employers must pay for accrued or earned vacation. Most states take a middle ground. They include earned vacation as part of wages, and wages must be paid to employees upon termination. Or they don't push vacation pay into the wages column, but do require that you follow your company policy when it comes to vacation pay. In other words, if your policy provides for payment of accrued (register to read more), including vacation, upon termination, then you must pay up. And if ...
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