Legal Question in Employment Law in Massachusetts
Is it legal for an employer to not pay an employee vacation time earned prior to termination?
2 Answers from Attorneys
Generally, no, although the definition of whether vacation time is "earned" is a matter of ompany policy. The general rule is that an employer must pay an employee for all accrued, but unused vacation time at the time of termination. (Massachusetts General Laws, chapter 149, section 148).
There is no requirement that an employer pay for vacation. However, if the policy is that vacation days taken are paid, then, when someone leaves, all earned unused vacation time must be paid. An employer can have unused vacation time expire pursuant to a policy, but it cannot have a policy that, if terminated, you lose your vacation. My guess is that, if an employee takes a vacation day, that person is paid, then you must pay all earned vacation on the day of vacation. Failure to do so will subject you to three times the amount plus counsel fees. Also, the President and Treasurer are personally liable.