Repercussions for Lack of Termination Notice in At Will Work State

[patience]

What is the name of your state? Virginia

Owner of small company I work for recently changed handbook, notifying employees of "some" changes but not requiring signatures that employee has read or understands changes or even knows what they are. Changes include requirement of 2 week (standard) or 30 day (manager) notice when leaving, otherwise, amount of time discrepancy is taken from accrued vacation, if not enough vacation, then amount of time is taken from last paycheck.

Changes were implemented when several employees left company because employer was late (weeks) with paychecks and didn't bother to communicate when or if checks would be expected. Employer was reported to Labor Dept, and had to pay up - not only missing paychecks, but unused vacation for exiting employees. Employer implemented changes because employer was mad at exiting employees and government authority breathing down employer's neck.

Handbook now has verbiage about being an "At Will" work environment, but verbiage changes from encouraging the termination notice time in the At Will section to "requiring" it in the personal leave and reimbursement of that leave sections, or else the above described subtractions from unused leave and/or last pay will be taken. Also, the verbiage states this can happen regardless of whether the employee terminates themselves or is terminated by employer. We have had many instances where an employee has given 2 weeks notice and employer has rejected notice, shortening it to 2 or 3 days.

Is it legal in Virginia to not pay accrued personal leave, and most importantly, is it legal to deduct earned pay if the "required" termination notice time is not given? Also, is it legal to enforce these changes if the employees do not agree or are not aware of them? If so, then employee's only recourse is to quit - what happens if they give the proper notice and employer shortens it, deducting unused vacation and/or pay? What is the name of your state?

 

[cbg]

In all 50 states, an employee must be paid for all the time they actually worked.

In all 50 states, an employer may legally accept an employee's notice early.

In Virginia, though not in all 50 states, an employer has no legal obligation to pay out unused vacation or personal time, so a requirement that they will only receive it if they give x amount of notice is legal. The employer, however, would not be able to get out of paying it by refusing the full notice; if the employee gives the appropriate amount of notice and then is walked out early, the benefit would still be due since the employee gave the notice required.

 

[patience]

Thanks CBG! So to clarify... if employer deducts earned pay due to lack of required termination notice, that is illegal?

One employee's response is that employer is "forcing our hands" to make sure we use up all personal leave, then quit with no notice as soon as paycheck is received (supposed to be 2 days after pay period ends). When employer refuses to pay for those 2 days work because of lack of notice given, report to Labor Dept (again). Would the employee be within their rights in this scenario?

Employer has a long history of sending evaporating checks ("lost in the mail")- especially if they are unused leave reimbursements or checks to vendors (including insurance, 401k, rent payments). Ex-employees have spent months trying to get their final pay, so remaining employees are looking for ways to get as much as they are rightfully due before walking out.

 

[cbg]

if employer deducts earned pay due to lack of required termination notice,

If by this you mean that the employee is not being paid for hours they worked, yes, that is illegal. The Department of Labor would be the appropriate venue for your complaint.

To reiterate, in VA there are no circumstances under which the law requires vacation or personal time to be paid out.