Accrued Vacation

[hastyatom]

What is the name of your state? Tennessee

I recently left a company that does not pay accrued vacation time upon termination. It is my understanding that TN law allows this "by virtue of company policy". However, after looking into this further I found something that refers to a contractual disclaimer within the employee handbook that would disallow the non-payment of accrued vacation (my handbook has this contractual clause). Is this a lost cause or is the accrued (but unpaid) vacation something I am owed?

Thank you in advance for any advice.

Here is the source for the information I referenced above: http://www.ogletreedeakins.com/uploads/publications/TN-Alert Aug-Sept 2005.pdf

 

[pattytx]

First of all, an employee handbook almost NEVER rises to the level of an enforceable contract. Secondly, I don't understand exactly what you're trying to tell us the handbook says.

 

[hastyatom]

First of all, an employee handbook almost NEVER rises to the level of an enforceable contract. Secondly, I don't understand exactly what you're trying to tell us the handbook says.

The handbook basically says that if you have accrued vacation time that it is forfeited when you resign. It also has the standard contractual disclaimer as well.

 

[cbg]

Under TN law, unless the employer specifically states that unused vacation will be paid out, it needn't be.

Since your employer has specifically stated that it WON'T be paid out, nothing in TN law is going to force them to do it anyway.

 

[hastyatom]

I very much appreciate the responses. I don't want to pursue something that I am not obligated to but want to make sure I have a good understanding of why this may be.

I have found a couple of recent articles that led me to ask the above questions. I have attached another article below. Here is a brief summary of what I have found out:

1. There is no specific law that requires my previous employer to pay unused vacation pay however according to the attached, the laws that do exist are very much open to interpretation.

2. Last year, in a very similar situation, the department of labor found that regardless of verbiage included in an employee handbook, that accrued vacation time must be paid at termination whether that be with or without cause.

3. The Attorney General has given opinion that, in short, says that he disagrees with this ruling.

4. From the link in my first post, if there is any contractual disclaimer in the employee handbook, then a policy saying that they won't pay accrued vacation upon termination is not enforceable.

Ultimately, it looks like the DOL and the Attorney General here in TN have conflicting opinions on how exactly accrued vacation pay must be handled with regard to terminating employees. The DOL says that it must be paid (not according to their website but according to the ruling below), the Attorney General has given opinion that it doesn't and while his opinion doesn't constitute law, I know that it is very influential.

The link I have attached below is extremely similar to my situation (the difference being I resigned and was not terminated) and I am just trying to find out if this should be pursued or not. If the courts have said in this case that this particular employer had an obligation to pay the terminated employee any accrued vacation (even though there was a policy in their employee handbook stating they would not) why would my situation be any different? Not trying to hang on to "hope" as the money isn't the issue - just want to make sure I receive what I am due.

Thanks again for putting up with me and for all the help.

http://www.wimberlylawson.com/CM/Alerts/Alerts1.asp

 

[cbg]

I can't comment on a disagreement between the DOL and the AG. I can tell you that my information came straight from the TN DOL's website, so if in a previous case they found that the employer was obligated to pay, I can only think that there was an anomoly in the specific case that is not binding on employer's in general.

You are free to examine the website for yourself.

http://www.state.tn.us/labor-wfd/lsques.html#laborlaws