Vacation Pay out Laws in Texas

[NancyDrew28]

What is the name of your state? Texas

Can an employer create a policy that denies an employee from receiving vacation pay if they resign or quit? Isn't that a violation of the ESA or is it some type of retaliation for severing your employment with the company.

 

[cbg]

There are no laws, either Federal or state (in Texas) that require the payout of vacation time at termination. It is entirely legal for an employer in Texas to have a policy in which they do not pay out vacation time.

 

[NancyDrew28]

What if the person has two weeks of vacation and takes his vacation but never returns to work after that. Are they entitled to all of their vacation since they had already requested it or can an employer stop the payout after they realize the employee is gone?? We pay on a weekly basis.

 

[cbg]

There is nothing in either Federal or Texas law that would require you to pay out vacation to an employee who did not return after vacation.

If you had already paid it before you realized he was not returning, however, you might be running into violations of banking law if you were to try to reverse the payments. Patty and/or Veronica can tell you more about that.

 

[pattytx]

My recollection (Veronica, please correct if I'm wrong) that you have 5 business days to recall a direct deposit.

Are you "advancing" the vacation? In other words, if the employee gets two weeks per year, can they take the entire week at the beginning of the year? Or can they only take it as it is accrued?

 

[Veronica1228]

My recollection (Veronica, please correct if I'm wrong) that you have 5 business days to recall a direct deposit.

Are you "advancing" the vacation? In other words, if the employee gets two weeks per year, can they take the entire week at the beginning of the year? Or can they only take it as it is accrued?

The number of days an employer has to reverse a direct deposit (or any ACH transaction) is directly related to the type of SEC (Standard Entry Class) code that is used to transmit the transaction. Usually payroll is sent with an SEC code of PPD which I believe is 5 business days after the Effective Date per NACHA rules.

I know, a simple 'yes' or 'no' would have sufficed, but I get paid by the word around here.