Legal Question in Employment Law in Louisiana
Pay for Unused Vacation Days in Louisiana
Do we have to pay an employee for vacation time earned, but not taken before they resigned their position? We have a written policy that states that we do not pay for unused vacation days. Can you give me where I can find the Louisiana law that pertains to this?
2 Answers from Attorneys
Re: Pay for Unused Vacation Days in Louisiana
If the vacation time is truly "earned," then yes, it has to be paid upon resignation or termination, but whether or not it is earned depends on the language of the policy. Also, if it is earned, any policy that requires forfeiture of earned wages is illegal - but again, you have to determine whether they are, in fact, earned at the time.
The statute that governs the payment of earned wages is La. R.S. 23:631 et seq., but you really need to examine the case law to determine specific obligations in specific circumstances.
Re: Pay for Unused Vacation Days in Louisiana
I agree with Mr. Demmons. I have both won and lost these type cases. When they win, they get attorneys fees and costs. They can additionally get penalty wages if the employer is arbitrary and capricious. If they demand to be paid, AND YOU OWE THEM THE VACATION, then from demand until paid they can get up to 90 days penalty wages and attorneys fees and costs. One example I can give you is my client was owed $300 for unused "earned" vacation and the company refused to pay. They ended up paying the $300 plus 90 days full wages which totaled $9000 plus $3000 attorneys fees and court costs. $12,300 plus costs is a lot to pay to avoid paying the first $300. And they had to pay their own attorney.