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Just laid off in Indiana.

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  • Just laid off in Indiana.

    Hi, first I'm new to the board, so forgive me if this is the wrong area to post this topic in. My girlfriend was recently laid off on Friday, September 30th. She's worrying big time, and I've searched and searched for this topic, but I've came up with no results. Basically my question is, in the state of Indiana, does a company need to have your check inhand at the time of terminating you ? Like I've said, I've searched similar threads all over on this and have found nothing.

    I know she has 48 hours of Vacation, 30 of Sick time, and the current week's paycheck still in limbo. So when exactly should they have it ready for her ? the two times I was laid off (California) I recieved a call to pickup my check from the Company the next day.

    Anyways, I appreciate any feedback or help... and thank you ahead of time.

  • #2
    No, in Indiana (unlike California) the employer is not required to hand you your check at the time you are terminated; they have until the next regular payday after her last day of work to pay her. I have no way of knowing if they will request her to come in to pick it up, or drop it in the mail; either is legal.

    They do not owe her the payout of any sick time. If they choose to pay it, fine; they have no legal obligation to do so and I wouldn't count on receiving it. (BTW, they don't have to pay out sick time in California either - if you received it, you lucked out.)

    Whether they owe her vacation time is a little more tricky. Although there is no statute specifically requiring employers to pay out vacation time at termination, Indiana courts have interpreted vacation time to be considered wages. To that end, an employer needs to pay out vacation time at termination UNLESS there is a company policy that places limits on the accrual. For example, if there is a company policy that says only employees who have been with the company for a year or more can receive payout, then they don't have to pay it out to employees with less than a year with the company. It can be pro-rated; they don't have to offer her any more than she'd accrued by the day of the layoff.

    Here is a link you might find helpful.
    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
      thank you... i appreciate the help.

      Yeah, I guess I did luck out with the paid out sick time. As far as her vacation, she was with the company for 16 months. So I dont quite know how her standing is with the company she works for.


      • #4
        I used one year as an example. It will depend entirely on what, if any, limits the employer has placed on it. It could as easily be two years, or six months, or no limit at all.
        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.


        • #5
          Just as a piece of added information, some companies credit you with your entire year's worth of vacation entitlement at a date certain, say Jan. 1 or your anniversary date. They then allow you to take that vacation throughout the year, even before you have theoretically earned it.

          Say you get 1 day per month. You start work July 1, and the grant date is Jan 1. You take no vacation days during your employment.

          July 1 - Dec 31 = earned 6 days
          Jan 1 = 12 days added to balance for current year's vacation = 18 days on the books
          September 30, you end your employment.

          You have really only earned 6 days for the previous year and 9 days of the current year. Therefore your accrued vacation balance would only be 15 days and, if required to pay it out by company policy (in your state), that would be the only amount legally required to be paid.
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          The forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on are opinions and suggestions of members and is not a representation of the opinions of does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.