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View Full Version : Terminated in VA- Can vacation accrued be charged concurrently with "cushion" pay? Virginia


phenryiv1
07-31-2006, 03:15 PM
I was terminated in Virginia due to a mass layoff. 14 of us were let go in my division; hundreds company-wide. I received a separation letter on July 10 noting that my final day of employment was July 31 and that I was to inform VA unemployment that that was my effective date, should I decide to file for unemployment. I was also paid through July 31 as a "cushion" payment (company's words, not mine). I asked at the separation meeting if I was to understand that clause to mean that I would be considered an employee who was not expected to report to work, and both my division manager and a corporate HR rep agreed that that was what the letter said. (This was important for another reason, at the time).

The letter stated that I was to were to receive a final paycheck on July 15, 2006, to encompass July pay (though July 31), vacation, and "any other services." This was not to include a lump-sum severance, or mileage reimbursements, or any bonus due. It was clearly asked- and answered- whether vacation was to be in addition to the "cushion" payment that consisted of the rest of July. Orally, it was stated that the letter was incorrect and that it was too late in July to calculate vacation accrued and to compensate us for that on the July 15 paycheck. Instead, we would be compensated- most likely with an August "paycheck"- at a later date for the vacation pay, which was acknowledged as a separate item in the "to be paid" list in the letter. The letter is fairly clear that we were to be paid through July 31, 2006, AND that vacation accrual would be paid in addition to this sum.

I got a call this weekend regarding COBRA benefits and settled that matter, but asked the HR rep when I might expect to see the pay for accrued vacation. According to the rep, there was to be no payment for vacation that was accrued. According to her, if terminated employees had remaining vacation, it was "rolled into" the payment through July 31, effectively being burned concurrently with the "cushion" (her term, not mine) payment made through July 31. What she said, in as simple of terms, was that there was no further payment to be made to cover vacation, and if in fact vacation was intended to be paid, it would have been paid with the July 15, 2006 pay check.

I have searched on the web and cannot find concrete information regarding the payment of vacation accrued and whether it is permitted for an employer to burn vacation concurrently with "given" time off. That is, to "pay" me though the end of the month, but to do so WITH MY OWN MONEY. All terminated employees were paid through the end of July, regardless of vacation days accrued OR OWED to the company.

Also, in WV we have a treble damages clause for monies owed following a termination. I went to law school in WV, and was not practicing in VA at the time of my termination (I changed career fields years ago). I never practiced in VA. Does anyone know if VA has a treble damages clause, and what the terms for those damages might be?

Thank you.

cbg
07-31-2006, 07:53 PM
There is no law in VA that requires the payout of unused vacation at termination in any case barring a bona fide contract that says otherwise. Nor were they required to provide you with any "cushion" pay (otherwise known as severance). Since there is no law requiring them to provide either, there is certainly no law prohibiting them from running concurrently. Unless the letter you have constitutes a binding contract (and only an attorney in your state can say if it does or not) you received more than the law requires and no damages, treble or otherwise, would be due.

phenryiv1
08-01-2006, 04:25 AM
There is no law in VA that requires the payout of unused vacation at termination in any case barring a bona fide contract that says otherwise. Nor were they required to provide you with any "cushion" pay (otherwise known as severance). Since there is no law requiring them to provide either, there is certainly no law prohibiting them from running concurrently. Unless the letter you have constitutes a binding contract (and only an attorney in your state can say if it does or not) you received more than the law requires and no damages, treble or otherwise, would be due.

My employee handbook entitles me to being paid the vacation upon involuntary termination.

I agree- not the severence nor the cushion were required, but both were an offer extended by the company, if I signed a mutial release. That same doc also had a specific line item for vacation- listed as a seperate item "due" if I signed the agreement. I had no control in the terms of the doc, so should it not be construed in the light most favorable to me?

cbg
08-01-2006, 04:58 AM
You will have to show all the documentation to a lawyer in your state. We cannot comment on the enforceability of documents we have not read. I am not aware of any law that requires that you be given the benefit of any ambiguous readings.

phenryiv1
08-01-2006, 05:59 AM
You will have to show all the documentation to a lawyer in your state. We cannot comment on the enforceability of documents we have not read.

Of course, of course- but this is at least a valuable place to bounce ideas off of others...

Regarding-
I am not aware of any law that requires that you be given the benefit of any ambiguous readings.- there is no requirement, but I was thinking along lines such as this:

"As a general rule, if a contract term is ambiguous, its meaning becomes a question for the fact finder--a proposition that would ordinarily preclude summary judgment for either party. See Pacific First Bank v. New Morgan Park Corp., 319 Or 342, 347-48, 876 P2d 761 (1994); cf. Yogman, 325 Or at 363-66 (interpreting ambiguous contract term on summary judgment when there was no relevant extrinsic evidence). In Estey, however, the court reaffirmed that when a contract purports to release one party from liability for its own negligence, any ambiguity will be construed against the drafter. 324 Or at 376 (quoting Transamerica Ins. Co, 276 Or at 951)." (emphasis added)

Like I said, a general rule, and it might not be applicable in VA, but it was something taught in school, and a WV lawyer with whom I consulted (my father) noted that that is the general precedent in WV.

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