Lost Vacation

[trademan]

I worked for a company in Dallas, Texas. According to the company's employee handbook, I had accrued 5 days vacation. I resigned from the company and have given my employer 2 weeks written notice. He decided to let me go immediately and not pay me any of my accrued vacation. Is this legal in Texas?

[Beth3]

In Texas, vacation must only be paid out upon separation if the employer has a policy of doing so.

[Texas709]

Right--so go check your employer's handbook (written policy) a little closer, to see what it says about payment of accrued time on resignation or termination. A practice of doing one thing or another is not enough, but if there is a WRITTEN policy or agreement that provides for payment, then accrued time is wages, and is due by the 6th day following discharge.

[trademan]

I found the following on the Texas workforce site
"The company policy will govern whether or not the employee is entitled to receive this pay. Therefore, it is imperative that the employee handbook state the company policy regarding unused vacation and sick leave. If the policy is silent, employers may need to be prepared to pay for unused leave."

[jbaber]

What if there is no policy manual at your company. I have repeatedly asked for one and even took it upon myself to compose a draft version for the partner in charge of employment, but still nothing. I cannot even find an old version of one. I have recently resigned and have no idea if I will be eligible for accrued vacation time or not.

My sister-in-law, who is HR for a large oil and gas firm said that if you accrue time each pay period, that this is "earned" and that it must be paid out. However, if you are given time at the begining of the year, then this type of vacation is not payable upon separation. Is this correct?

[Pattymd]

No, that's not true. Whether the vacation is "earned" as you work or "granted" (not accrued) on a date specific, the company policy controls. Having said that, however, past practice can also be a way to have a "policy", even if it is not written. What have they done in the past?

[jbaber]

I honestly don't know. I have been here for almost a year and nobody has left that I know of. When I asked about policies, I get no response. I don't even know what days we get off as holidays...

[cbg]

Texas law does not REQUIRE that unused vacation be paid out under any circumstances, regardless of what method the employer uses to accrue it.

However, Texas law does require an employer to follow their policy. If they have a policy of paying out vacation in one situation or other, they have to follow that. But if there is no written policy one way or another, unless they have made a habit of paying it out, they are safe in not doing so.

[jbaber]

While it was not ultimately the answer I wanted, I am very thankful to this group for their quick responses.