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Earned time

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  • Earned time

    I was hired at a company 2 years ago and have accrued 100+ hours of vacation time. I have been demoted and offered a position of much less then what I was hired for or a servernce package. I was also informed according to company policy they will only pay for half of my vacation time. Can they do that? I thought if you earned/accrued the time it was due to you at termination.

  • #2
    They CAN demote you and offer you a choice of a lesser position or a severance package.

    However, my understanding is the same as yours; that all earned but unused vacation time must be paid out at termination. Contact the ME state DOL for clarification.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


    • #3
      My reference notes that Maine law does provide that "whenever the terms of employment include provisions for paid vacations, vacation pay on cessation of employment has the same status as wages earned."

      You might want to contact the Me DOL as suggested to verify.
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