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PTO time and dismissal

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  • PTO time and dismissal

    In Indiana, when you are fired as a salaried exempt employee, can your employer refuse to pay your accrued sick and vacation time?
    [FONT=Book Antiqua][SIZE=4][COLOR=Purple]Annie

  • #2
    In Indiana, it depends on company policy. While Indiana courts have found that in the absence of any policy at all, vacation or PTO time is considered wages and should be paid out, the courts will not require an employer to go against their own policy. So if there is a written policy specifying that PTO or vacation time will only be paid out if certain conditions are met, the employee must meet those conditions in order to receive the PTO time.

    BTW, there is no statute in Indiana requiring that the time be paid out.
    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
      And no state requires the payout of sick pay earned at termination.
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