What happens to your unused vacation time or sick time when you're fired from your job? Will you be paid for the leave time you have accrued or won't you get anything? The answers depends on where you work and on company policy. Many states have laws which require employers to pay for unused sick or vacation time when an employee is terminated.

Pay for Unused Leave for Fired Employees

Because companies are not obligated to provide paid vacation or sick time to employees, they are also not required to pay for unused leave time, unless there is a state law providing for payment when an employee is fired or laid-off.

State Laws Providing for Pay for Unused Vacation

There is no federal law governing if and when accrued vacation must be paid when an employee leaves his or her job. However, some states required payment of unused leave. For example, twenty-four states require that your employer include unused vacation pay in your final paycheck. If you live in one of those states, you will be paid for the leave you didn’t use.

If you are fired, you may, or may not, be paid for unused vacation and sick time. It depends on company policy and the law in your state regarding accrued leave time and whether that company policy sets criteria for:

1. Paying any employees for unused vacation or sick leave.
2. Paying employees who are fired for cause for unused vacation or sick leave.

State law and how the company policy is written would determine your eligibility for pay. The policy should be consistent and clear, so employees understand what they are entitled to receive when their job is terminated.

The organization cannot have a policy that violates state labor law.

However, in states that don’t require employers to pay out unused leave the company can opt to pay accrued leave to terminated employees.

Check on Eligibility

If you're not sure about eligibility, check with your Human Resources department or state department of labor for information on what unused leave pay you qualify to receive.

Have a Question?

Here are answers to the most frequently asked questions about termination from employment, including reasons for getting fired, employee rights when you have been terminated, collecting unemployment, wrongful termination, saying goodbye to co-workers and more.

Read More:50+ Frequently Asked Questions About Getting Fired | What to Ask Your Employer When You're Fired

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