Vacation Time

My husband's company just cut back his hours to part-time status. Rather than letting him keep vacation time he accrued, they are paying it out at 75%!?!? Is this legal?

1 answer  |  asked Feb 20, 2009 2:06 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
Generally, an employer may not cut vacation pay already earned.

Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, generally, an employer may not cut vacation pay already earned. The issue is what has been earned. An employer may offer vacation pay, but offer only vacation pay that is NOT payable upon quit or termination. Therefore, only vacation pay that is usable while employed has been earned. An employer MAY NOT retroactively change what is earned, however.

If your husband's company only offered vacation pay that is payable at 75% upon change of status, then there is little that can likely be done. However, that would be an extremely unusual fact situation; I suspect that you could enforce a 100% payout.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com

posted by Christopher Ezold  |  Feb 24, 2009 10:30 AM [EST]

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