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Frequently Asked Questions

Question:  Can I decide not to give employees paid vacation in a closing or layoff situation?

Date Added:  3/1/2012 3:46:13 PM Hits:  493
Last Revised:  3/1/2012 3:46:13 PM Vote: 
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Answer
Vacation pay may be considered wages or a fringe benefit in some situations. If an employee has "earned" the vacation pay, that is, if he/she has a legal right to it by contract or otherwise, then an employer must pay it as part of WARN damages. These obligations are generally governed by contract and sometimes by the Employee Retirement and Income Security Act. Call 1-800-998-7542 or visit www.dol.gov/ebsa External link opens in a new window for more information.


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