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HOW TO CALCULATE VACATION PAY- OUTSIDE SALES SALARY TERMINATION\? Arizona

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  • #31
    At the risk of upsetting the forum - Boom1997, I get it. And I am sorry - yes, the calculations are wrong, but you are going about the numbers the wrong way, and so is your former employer's payroll person.

    Were you getting the same amount of pay every pay period ($2458.33)? If so, they are averaging annual pay for the year by 24 pay periods, with differing numbers of working days each time - see below.

    Paid twice a month for 12 months = 24 pay periods a year.

    Work 40 hours a week.

    40 hours x 52 weeks = 2080 hours.

    2080 hours / 24 pay periods = 86.67 hours per pay period.

    $59000/salary per year / 24 pay periods = $2458.33 per pay period.

    $2458.33 / 86.67 hours = $28.63 hourly rate.

    $28.63/hr X 80 vacation hours = $2263.14 gross pay for 10 days vacation.


    Now - I would be far more inclined to show them that hourly calculation than to go off counting days in a pay period all year - but that's just me.

    You got $1638.88. As countless other posters here have said, that is $1638.87 more than any labor law requires you to get. However, if you haven't already disputed the calculation with your employer (and by your posts here, I am guessing you most certainly have by now) - I would mail a certified letter to your employer *politely* disputing the calculation, showing what they did and how you calculated what you feel is the correct amount, and then see how they respond. If you file a claim with the TN or AZ DOL, you run the risk of zero response as others have noted.

    What you're dealing with here is an accountant or bookkeeper or payroll monkey who doesn't know how to handle bimonthly payroll. They are averaged for hours over an annual period and should always run back to hours, never days. If that payroll person actually "subtracted a day" when you worked the full pay period, and you got $1638.88 for 10 days of vacation - using that math, that means your hourly rate is $1638.88/80 = $20.49, or $42,610 per year. Seriously - I would write a VERY polite letter but it's wrong. Your hourly rate is $59000/2080 = $28.63.

    I would also make note that you worked each day in the 2/1-2/15 pay period, but don't expect much there. Did you work at all on the 14th? Are you exempt? If so, they should not "ding" you for that day, but for now, let it be. You're focusing on an hourly rate. Once your boss realizes he's got someone in payroll who can't do payroll, maybe that gets looked at, too.

    Your persistent posting here has been noted, and unfortunately not in a good way. I would not use the same tactics with your employer. Ask once. Be clear, concise and polite. Do not play to emotion or disparage anyone ("I believe there has been an error in calculating my pay for vacation" - not "that monkey in payroll doesn't know what he's doing.") Once you get a response, you don't ask again. You don't continue to clarify. You don't ask another way. You don't leap on something one person says as a reason to ask 3 more questions. That's it. Decision made, lesson learned.

    But if you already have asked your former employer to look at this again, and came here looking for more ammo - well, you're probably done there, too.

    Good luck.

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    • #32
      And with that, I am going to say one more time:

      In your state, if the employer chose not to pay out any vacation at all, it would be legal. They have NO legal obligation to even pay out vacation, let alone to use any specific calculation method. No lawyer, no state agency, and no judge, is going to force your employer to use the method of calculation you want them to use.

      You can jump up and down and scream all you want to. If you do indeed wangle more vacation pay out of your employer, it will be solely because your employer chooses to pay it. You have already received more than you are entitled to by law.

      And you might want to keep in mind that you are sometime going to need a reference from this employer, and he is absolutely free under the law to describe how you have behaved with reference to this issue.

      And with that, this thread is done.
      Last edited by cbg; 03-25-2014, 03:07 PM.
      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.

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