View Full Version : Indiana...what is the real story on vacation pay???

03-02-2006, 04:01 PM
I'm getting totally confused...

I was a manager up until last Saturday with a casual themed restaurant. I was terminated for "fraternization"...(always the manager who takes the fall)...anyway, I was told that because it was "fraternization", I would NOT receive my one week of vacation. My director told me that I would if I was in Illinois.

I started with the company 6/29/05. Ended 2/25/06. I worked for the company training in Romeoville, Il. up until Labor Day last year. The day after labor day I started in Indiana for the company.

I called the Indiana Department of Labor today and was told that I AM entitled to my vacation pay...I've seen it stated that way 100 different times today on websites for Indiana.

The corporate person I spoke with says they have on their record that Indiana is one of the states that allows them NOT to pay me because I was terminated for "fraternization".

Why is the State telling me one thing and corporate another??? The corporate chic is looking further into this matter to see if their info. is outdated.

Please tell me I'm gonna get my vacation pay...

Thanks! -Jason :confused: :confused:

03-03-2006, 07:15 AM
Well, I can't for sure. Unfortunately, the Wage and Hour section of the Indiana DOL website has been "under construction" for months now and has very little information. However, I understand from a colleague that, although Indiana law may not require accrued vacation payout at termination specifically, case law in the state has deemed it vested wages and required the employer to pay.

I'd go by what the DOL tells me and not what corporate tells me. If the DOL will take your claim, more power to you. Take their advice.

03-03-2006, 07:55 AM
I can tell you.

Indiana law has no statute requiring that vacation be paid out at termination. However, there is state case law suggesting that when push comes to shove, the courts are likely to find in favor of the employee receiving such pay - UNLESS there is a company policy stating the circumstances under which it will be paid out and the employee did not meet them.

For example, if company policy says that you will only get your vacation paid out if you give two weeks notice and you did not give two weeks notice, you are not owed your vacation. If the company policy is that only employees who worked there over a year will receive it and you only worked their eight months, you are not due vacation pay. However, if there is no policy in which the reasons for payout are limited, the employee will likely prevail in any legal action to obtain unused but accrued vacation time.

03-03-2006, 08:42 AM
And cbg is the colleague about whom I was speaking. :)

03-13-2007, 06:06 AM
From: http://www.in.gov/labor/wagehour/estandfaq.html#accrue

"When I leave my employment, is my former employer required to pay me for any accrued vacation time?

Yes, absent an agreement to the contrary. The Indiana Court of Appeals has found that an agreement to give vacation pay to employees is considered a form of compensation for services just like hourly wages. Vacation pay is additional wages, earned weekly, where only the time of payment is deferred. As a result, an employee is entitled to a pro rata share of his/her accrued vacation at the time of termination.

However, if there is a company personnel policy or employment contract which states certain conditions under which accrued vacation pay will be given upon termination, the employee must meet those conditions in order to receive their accrued vacation pay."

03-13-2007, 09:42 AM
Thank you for your confirmation; however, did you happen to notice that this thread is over a year old?

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