Protecting an Association’s Vacation Policy

December 15, 2016

Disputes frequently arise over whether an employee is entitled to be paid for accrued, but unused, vacation time at the end of his or her employment. Epstein Becker Green has experience protecting clients against and in such situations.

For example, we successfully represented a professional association in a trial involving an appeal from a decision by a wage collection referee denying the complainant’s claim for non-payment of unused vacation time at separation. The complainant presented a novel interpretation of the association’s vacation policy with respect to the payment of accrued, but unused, vacation at separation, which, if adopted, would have had a significant financial impact on the association beyond the complainant’s claim, as the relevant state’s statute of limitations on contract claims is six years. The association would have been exposed to multiple lawsuits and state administrative proceedings of an indeterminate value for unpaid vacation at the time of separation.In December 2016, the court held a trial de novo and took testimony from witnesses on the complainant’s appeal. After we presented our case, the court issued its ruling denying the complainant’s appeal and affirming the referee’s decision. The complainant did not appeal the decision to an appellate court.

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