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Common Vacation Policies Called Into Question in Maryland |
November 16, 2008
Previously published on November 8, 2007
The Maryland Court of Special Appeals recently held that an employee who resigns or is fired must be paid for all accrued but unused vacation leave, despite any provisions in an employee handbook or employment contract that provide otherwise. Prior to this decision, the prevailing wisdom (and position espoused by the Maryland Department of Labor, Licensing & Regulation) was that vacation time did not have to be paid upon termination if the employer had a clear policy that detailed the conditions of forfeiture. Many employers have policies that deny payment for accrued vacation time if employees are terminated for cause or resign without providing two weeks notice. However, the legality of such policies is now in question. While the court's decision was not published and has no precedential value, the opinion signals a possible judicial hostility toward these policies going forward.
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The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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