Tuesday, July 7th, 2009...1:24 pm
Is Unused Vacation Non-forfeitable Wages?
The Massachusetts Supreme Judicial Court defers to the enforcement agency, and says Yes, at least when the employee didn’t leave the job voluntarily. EDS Corp. v. Attorney General, 2009 WL 1608857, 454 Mass. 63 (Mass. June 11, 2009). The Court left open the possibility that it might approve a “use it or lose it” policy if the employee has adequate opportunity to “use it.”
The agency’s view (adopted by the SJC) is similar to the one reached by the Alaska Court in Pyramid Printing v. ASCHR, 153 P.3d 994, 999-1000 (Alaska 2007)(Court affirms ASCHR award of vacation pay to employee constructively discharged in violation of Title 18).
Alaska management counsel who believe that Pyramid Printing leaves unanswered issues of employer liability for unpaid vacation pay (a view I’ve heard from very competent employer-side attorneys) might take a look at the Massachusetts opinion.
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