Earned, accrued vacation time payout upon termination

[Shamera]

What is the name of your state? What is the name of your state? Michigan

Hello:

My at-will employment was terminated. My circumstances involve my not having been paid for my earned, accrued vacation time upon my termination.
I understand that under Michigan Law, an employer is only legally required to pay an individual accrued vacation time if the applicable employment agreement or policy provides for it. This former employer’s policy on the payout of accrued vacation regarding terminated employees states, “the Director reserves the right to approve or deny vacation time payouts.”

It is also my understanding that specifically, the Michigan Wage & Fringe Benefits Act provides that an employer must pay fringe benefits to or on behalf of an employee in accordance with the terms set forth in the written contract or written policy. Additionally, Michigan’s Wage & Fringe Benefits Act defines fringe benefits as compensation other than the wages or salary paid to an employee and specifies such items as vacation time and sick time. MCL 408.471(e).

This former employer’s common practice, at termination or voluntary separation of an employee, has been to payout-accrued vacation banks.
In short, upon my termination, the Finance Department contacted me to inform me that a check will be cut for my earned, accrued vacation time payout. However, the very next day, I was once again contacted by the Finance Department to inform me that the “Human Resources Department did not check the approval box on the Smartsheet that informs the Finance Department that my earned, accrued vacation time could be paid out.” The Finance Department then strongly recommended that I bring this matter to the Director’s attention, in order that this matter is resolved, as it is common practice, by this employer, that separated employees receive any earned, accrued vacation time payout.

This matter regarding my earned, accrued vacation payout has gone unresolved since November 6, 2018. I have sent numerous emails to the Director and its Chief General Counsel, only to continue to be responded to that “this matter will be looked into and will be responded to.” My most recent response was that I will have a response three weeks ago. Again, to date, I have received no response.

 

[Taxing Matters]

"Delay is the deadliest form of denial." - C Northcote Parkinson

The fact that they have have delayed it this long and keep telling you that the decision will be made some time later is a pretty good indication that the company is simply not going to pay it. After all, this isn't something that requires any kind of deep thinking on the part of the company or that requires getting some kind of complex legal analysis before the company managers act and make a decision. Nor is paying you, if that's what they wanted to do, very hard. Not having read the company policies on this myself, I cannot say for sure if you are actually entitled to get paid. However, most companies are careful to set up their policies so as to leave this kind of decision to the discretion of the management.

You might want to consult an employment law attorney in your area to see if you have any grounds to sue for payment, if the amount involved makes that worthwhile. If you do have a good case for that, then there is no reason to further delay pursuing doing that as it is pretty clear they aren't going to pay you otherwise.

If you don't have a good case for that, you might want to just move on and accept you aren't getting the money since I think it likely that further efforts will only result in the same responses. And that would just be a waste of time and source of frustration for you. "Insanity is doing the same thing over and over again and expecting different results." That quote is often attributed to Albert Einstein, although apparently he never said or wrote it. The true origin of the quote is unclear, but there are a number of quotes with the same idea that you can find scattered throughout literature.

 

[HighwayMan]

It would be nice if Shamera would actually ask a question.

 

[Just Blue]

What is the name of your state? What is the name of your state? Michigan

Hello:

My at-will employment was terminated. My circumstances involve my not having been paid for my earned, accrued vacation time upon my termination.
I understand that under Michigan Law, an employer is only legally required to pay an individual accrued vacation time if the applicable employment agreement or policy provides for it. This former employer’s policy on the payout of accrued vacation regarding terminated employees states, “the Director reserves the right to approve or deny vacation time payouts.”

It is also my understanding that specifically, the Michigan Wage & Fringe Benefits Act provides that an employer must pay fringe benefits to or on behalf of an employee in accordance with the terms set forth in the written contract or written policy. Additionally, Michigan’s Wage & Fringe Benefits Act defines fringe benefits as compensation other than the wages or salary paid to an employee and specifies such items as vacation time and sick time. MCL 408.471(e).

This former employer’s common practice, at termination or voluntary separation of an employee, has been to payout-accrued vacation banks.
In short, upon my termination, the Finance Department contacted me to inform me that a check will be cut for my earned, accrued vacation time payout. However, the very next day, I was once again contacted by the Finance Department to inform me that the “Human Resources Department did not check the approval box on the Smartsheet that informs the Finance Department that my earned, accrued vacation time could be paid out.” The Finance Department then strongly recommended that I bring this matter to the Director’s attention, in order that this matter is resolved, as it is common practice, by this employer, that separated employees receive any earned, accrued vacation time payout.

This matter regarding my earned, accrued vacation payout has gone unresolved since November 6, 2018. I have sent numerous emails to the Director and its Chief General Counsel, only to continue to be responded to that “this matter will be looked into and will be responded to.” My most recent response was that I will have a response three weeks ago. Again, to date, I have received no response.

Why were you terminated?

 

[Shamera]

Why were you terminated?

Hello: Thank you for your response. Verbatim, I was told, "we are exercising the at-will policy . . . things just aren't working out." My employment was from September 2017 to November 2018. Upon being terminated, I earned and accrued 200 hours of unused vacation time.

 

[Shamera]

It would be nice if Shamera would actually ask a question.

Hello: thank you for your response. My specific question is what recourse, if any, might I have?

 

[cbg]

As Tax suggested, you might discuss it with a local attorney. You might also discuss it with the Michigan Department of Labor. Be advised that doing either may well be a kiss goodbye to any references you might sometime need from this employer.

 

[Shamera]

"Delay is the deadliest form of denial." - C Northcote Parkinson

The fact that they have have delayed it this long and keep telling you that the decision will be made some time later is a pretty good indication that the company is simply not going to pay it. After all, this isn't something that requires any kind of deep thinking on the part of the company or that requires getting some kind of complex legal analysis before the company managers act and make a decision. Nor is paying you, if that's what they wanted to do, very hard. Not having read the company policies on this myself, I cannot say for sure if you are actually entitled to get paid. However, most companies are careful to set up their policies so as to leave this kind of decision to the discretion of the management.

You might want to consult an employment law attorney in your area to see if you have any grounds to sue for payment, if the amount involved makes that worthwhile. If you do have a good case for that, then there is no reason to further delay pursuing doing that as it is pretty clear they aren't going to pay you otherwise.

If you don't have a good case for that, you might want to just move on and accept you aren't getting the money since I think it likely that further efforts will only result in the same responses. And that would just be a waste of time and source of frustration for you. "Insanity is doing the same thing over and over again and expecting different results." That quote is often attributed to Albert Einstein, although apparently he never said or wrote it. The true origin of the quote is unclear, but there are a number of quotes with the same idea that you can find scattered throughout literature.

Thank you for your response. Points noted.

 

[Chyvan]

My employment was from September 2017 to November 2018. Upon being terminated, I earned and accrued 200 hours of unused vacation time.

5 weeks of vacation for 14 months of work. That is a very generous benefit.