Wage Act Violation: Unpaid Vacation
Bill worked as a sales representative for an out of state company with a location in Massachusetts company that supplied medical equipment. While he was battling some significant health issues, the company terminated his employment. They offered him a severance agreement to consider, which would release any claims he had for age or disability discrimination.
While he was considering the severance agreement, however, the company withheld payment for his accrued but unused vacation, taking the position that this was part of the severance package and he would not be entitled to it unless he signed the release of claims. What the company did not understand was that Massachusetts law requires payment in full of unused vacation time on the day of termination, and that it cannot be held back as an inducement to sign a separation agreement. Wage Act SolutionWe worked with Bill to evaluate his other potential claims, but also filed a Wage Act complaint to secure his right to the unused vacation. Before that complaint was answered, we were able to negotiate a comprehensive package for Bill that allowed him to move on from this position with adequate compensation for the claims he had release, and full payment for his vacation time.
PostscriptIf you are terminated for any reason, you should check to be sure that your unused vacation has been fully paid. You should also know that you are entitled to this payment right away, even if you are in the middle of considering a severance package from your employer.
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