If an employee works less than two weeks at new job do we still have to pay vacation time?

Full question:

If a employee gets new time off benefits staring January 1, and she only works January 2 and then sends a letter on January 15 that she quits, do we still have to ay her vacation benefits for the new year?

  • Category: Employment
  • Date:
  • State: Illinois

Answer:

We are assuming that this issue was not covered in her employment
agreement (written or oral) and that there is no personnel manual or
employee handbook covering this issue.

Vacation pay is widely regarded as a form of wages. Therefore, an
employee earns vacation pay simultaneously with other forms of ongoing
compensation. Did she “earn” this vacation time the previous year? If so,
then she should be compensated. For example, if ten days vacation is
allowed after working for twelve months in a previous year, the vacation
pay would have been earned by an employee who worked the previous
twelve months.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, paid time off (PTO) is considered an employee benefit. It provides employees with paid leave for various reasons, such as vacation, illness, or personal matters. Employers may offer PTO as part of their benefits package to attract and retain talent. The specifics of PTO policies can vary by employer, including how it accrues and whether it can be carried over from year to year.