Legal Question in Employment Law in Indiana

Accrued Vacation

I am resigning my job and moving to another employer. My company has written a policy to not pay out accrued vacation upon leaving the company. The policy states that ''accrued vacation is not paid out unless required by state law''. I contacted the Indiana Dept of Labor and they told me that the way this language is written would require the employer to pay my accrued vacation in Indiana.

Is this correct and do I have a case?


Asked on 3/24/04, 9:33 am

1 Answer from Attorneys
Kenneth Lauter Kenneth E. Lauter, PC

Re: Accrued Vacation

Indiana law requires that accrued vacation be paid upon termination, unless company policy specifically provides otherwise. Because your company's policy is written in such a way that it is modified by state law, I would tend to agree that you are owed the money. However, to my knowledge, there is no caselaw that addresses the question in the context of a policy like your employer's. If you are owed less than $800, Indiana law requires that you first go through the Indiana Dept. of Labor in an attempt to collect your money. If they are unsuccessful, you can hire an attorney to bring suit.

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Answered on 3/30/04, 8:32 am


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