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Severance Package Lawyer Update: Should My Severance Pay Include Payment for Accrued Vacation Days?

Thumbnail image for top.lawyers.arrive.mag.2011.jpgThis is a common question that our New York and New Jersey Severance Pay Lawyers regularly receive from our clients. In New York, except in very limited circumstances, employers are required to pay employees for unused accrued vacation pay upon termination of employment. Many employees mistakenly believe that they accrue full vacation time (e.g., two weeks) upon their date of hire. Generally that is not true. Most companies have a schedule wherein vacation time accrues on a monthly basis. For example, if an employee only worked six full months, that employee may have only accrued half of his or her vacation allotment. In most cases, employees should receive payment for their accrued vacation pay even if they do not sign a Severance Package. Although it is not common in New York, employers may require employees to forfeit their vacation pay unless certain criteria such as signing a Severance Package. In order for employers avail themselves of this benefit, they must notify their employees in writing of the conditions regarding forfeiture of vacation pay.

In New Jersey, generally employers are not required to pay accrued and unused vacation pay to separating employees. However, our Severance Pay Lawyers have successfully argued that our clients should receive vacation pay based on several legal arguments. An experienced employment attorney can negotiate more favorable terms of your severance pay agreement. In recent years, there has been increased litigation, including class actions, regarding the accrual, capping, forfeiture and payment of vacation pay.

Call now to speak with one of our experienced Severance Package Lawyers to discuss the terms of your severance agreement – (800) 893-9645.


Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.

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