One issue that often arises with employees is whether
they should be paid out unused vacation pay at the end of employment. Because
Ohio law considers vacation pay a deferred payment of an earned benefit, an
employer generally cannot withhold accrued vacation pay at the end of
employment (just like it cannot withhold wages from a final paycheck). Unlike
wages, however, because this benefit is deferred, an employer can
implement a policy under which an employee forfeits unused vacation days.
Thus, the rule for vacation pay is as follows:
Do you want to know what such a policy looks like? A
recent Ohio appellate decision-Majecic v. Universal Devel. Mgmt. Corp. [pdf]-provides
the following example:
Paid Time Off (PTO) includes sick, vacation, ... and
personal time off with pay.... Employees will be given PTO days after one year of
employment.... All unused PTO will be forfeited upon an employee's resignation or
Two thoughts to leave you with:
Visit the Ohio Employer's Law Blog for more
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