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Question about leaving job in MA

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nknetusa

Junior Member
Massachusetts

Two questions - I live and work in Massachusetts. Last year, my company converted vacation days to Paid Time Off Days. If I resign, is the company still legally obligated to pay out the balance of this time to me (I have about 3 weeks)? Also, my company announced it is immediately fully vesting its' 401k matching contributions for all employees on July 1 (previously it would only vest after five years of service). If I give my notice before July 1, but my last day of of employment is, say, July 3, is the company required to vest my balance as stated? Thank you.
 


cbg

I'm a Northern Girl
MA law requires that any vacation or PTO time that you have ACCRUED but not taken be paid to you at termination. Your employer is not obligated to pay out any time that you would have accrued had you remained with the company.

In other words, if three weeks is what you already have on the books on your last day, they must pay out three weeks. But if three weeks is your entire allottment for 2009 and on your last day you have only accrued a week and a half, then they only have to pay out a week and a half.

Your 401k must be vested as the plan document states, whatever that is.

I just realized what you are asking.

If you give notice on June 18 that you intend to leave on July 3, and your employer decides they don't need you to work out your notice and ask you to leave on June 18, then when the 401k vests on July 1, too bad so sad. The fact that you were willing to work until July 3 does not obligate your employer to allow it, or to grant you a benefit that you would have received had you remained. In a lawsuit or claim with the Feds, the burden of proof would be on you to show that they released you ahead of your desired date SPECIFICALLY FOR THE PURPOSE of denying you vesting, which would be somewhat difficult since you instigated the termination.

If you want to be certain you are vested in the plan you would be wise to refrain from giving notice until July 2.
 
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Mass_Shyster

Senior Member
Massachusetts

Two questions - I live and work in Massachusetts. Last year, my company converted vacation days to Paid Time Off Days. If I resign, is the company still legally obligated to pay out the balance of this time to me (I have about 3 weeks)? Also, my company announced it is immediately fully vesting its' 401k matching contributions for all employees on July 1 (previously it would only vest after five years of service). If I give my notice before July 1, but my last day of of employment is, say, July 3, is the company required to vest my balance as stated? Thank you.
If you give your notice before July 1, you may not still be employed on July 3.
 

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