Legal Question in Business Law in New Jersey

Re: Employees

In the absence of an employment contract, and employer is obligated to pay a departing employee what is due at the effective time of departure. If the business has a policy that employees can receive pay in lieu of unused sick time, then arguably the employee would be due pay for any sick time that was "earned" but not taken. That practice is common in large companies for vacation time and less common for sick time. If, however, you permit a certain number of paid sick days or personal days without considering them to be earned over time, then there is no obligation to pay when an employee leaves.

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