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Does vacation have to be paid out on termination (Michigan)?

  
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Does vacation have to be paid out on termination (Michigan)?

Postby fyfe » Mon Jul 09, 2012 9:42 am

I am trying to get clarification on my companies policy, but I find it a bit ambiguous. This is the exact verbage from our employee handbook.

"To be eligible for the vacation allowance, employees must be actively at work on their anniversary date. Any unused vacation for hourly employees will be paid at the end of the year in which it was to have been taken. Salaried and Office Hourly employees will not be paid for any unused vacation time.

(Employees who terminate their employment before their next anniversary date will be paid for any unused vacation time but will not be eligible for any of the vacation allowance associated with their next anniversary date.)"

I am salaried and i am a bit confused by the last two lines. It seems like they are saying that I wouldn't get vacation paid if I were to roll it over into the next year, but would if I were to terminate.

They were very clear when they were referring to anniversary dates to classify hourly vs. salary, but they only say employees when referencing vacation pay on termination.

Anyone have experience with Michigan labor laws?
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Does vacation have to be paid out on termination (Michigan)?

Postby aescby » Mon Jul 09, 2012 9:50 am

There are no laws in MIchigan or any other state

Vacations are a perk not a right, so they do not have to even pay you at all

If you have a contract then they have to follow that, but if they stopped all vacation time tomorrow and didn't pay anybody from tomorrow on out there is nothing you can do

If you are that confused do what any other person would do, stop into HR and ask for a clarification, they will know better than anybody here don't you think?
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Does vacation have to be paid out on termination (Michigan)?

Postby reid » Mon Jul 09, 2012 9:53 am

Michigan labor law doesn't require ANY vacation, so it's entirely up to the handbook.

The way I read it is that if you have vacation still owing on your anniversary date, you will lose it. If you quit before that date, the amount is still owing and will be paid.

That does create an odd situation. Let's say you had 2 weeks vacation awarded as of your anniversary date of Jan 1, 2012. If you do not take any vacation, on Jan 1, 2013 that time will disappear (and presumably you'll have earned more to replace it. So if you quit Dec 31, you would be entitled to your 2011 weeks. If you quit Jan 2, you would be entitled to the 2012 weeks only.

But if you had taken most or all of your 2011 weeks in 2012, then the situation is different. Then, quitting Dec 31 would give you NOTHING, whereas quitting Jan 2 would still earn you your 2012 weeks.

So the message here is: take all your vacation weeks in the year in which you are entitled, then quit the day after your anniversary
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Does vacation have to be paid out on termination (Michigan)?

Postby egann » Mon Jul 09, 2012 9:56 am

They do not owe you vaca pay..
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Does vacation have to be paid out on termination (Michigan)?

Postby laureano97 » Mon Jul 09, 2012 10:02 am

They do not owe you vaca pay..
Salaried and Office Hourly employees will not be paid for any unused vacation time.
I am salaried

YOU will not be paid for unused vacation time.

They did NOT refer to anniversary dates to classify hourly vs salary. The two issues CANNOT be related. They referred to anniversary dates ONLY in the context of when vacation time becomes available.

Michigan labor law, along with those of most US states, say NOTHING about vacation pay whatsoever.
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