I'm looking to leave my current employer as soon as possible and have a few questions on a subject that are in the "gray area." As far as I know an employer was obligated to pay you all of the vacation time you had earned if you decide to terminate your employment, IF you give a full two weeks notice before your last worked day. However, on the Michigan Department of Labor website, it states that employers are not
required to pay accrued vacation time if the employee handbook does not cover the subject. Last week someone from the corporate office came in and changed out all of the employee handbooks with new versions.
The new version under vacation time and policies only
states that "In the event of willful termination by an employee, vacation time may not be taken after the termination date, or extend the employee'* contract." I interpret that to mean that you cannot get cash for your earned vacation time after you put in your two weeks notice. Like I said, I know before in the policy book it said you WERE entitled to this benefit. however, they just changed out the policy book last week. How would you all interpret this? Am I out my vacation time and pay (three weeks worth!) ?
I had unused vacation time when I left my employer, can I receive payment for this time?
Agency: Labor & Economic Growth
The employer is required to pay fringe benefits in accordance with written contract or written policy, if the company policy has a pay-out provision which states that unused time will be paid to you when you separate your employment, then the employer would be obligated to pay you for the unused time.
The employer would not be legally obligated to pay you for unused time if the company policy does not address the issue.