Do You Have a Claim If Your Accumulated Paid Time Off Is Not Paid Out?

Employees often wonder if they have a claim when their accumulated paid time off is not paid out to them at the time of their termination of employment.  According to the New York Labor Law and case history from New York courts, unused paid time off, which may be labeled as paid sick time or paid vacation time, must only be paid out if the employer’s policy states that it is supposed to be paid out at the time employment ends.[1]  Employers must give notice to employees in writing of any policies that advise that any accumulated paid time off will be paid out at the time of termination of employment, and fail to pay out the accumulated time, for a former employee to have a claim.[2]  However, employees should carefully read employer policies or handbooks for any forfeiture clauses, or any conditions describing that accumulated paid time off may be lost under certain circumstances.

If you believe you may have been a victim of unpaid wages you should speak to an experienced New York employment law attorney, as your employer may be in violation of these laws.  To learn more or to schedule a consultation to discuss your situation, contact Borrelli & Associates, P.L.L.C. for a free consultation.

[1] N.Y. Lab. Law § 198-c; See Glenville Gage Company, Inc. v. Industrial Board of Appeals of the State of New York, Department of Labor, 70 AD2d 283 (3d Dept 1979) affd, 52 NY2d 777 (1980).

[2] Wages and Hours Frequently Asked Questions, https://dol.ny.gov/wages-and-hours-frequently-asked-questions.