When an employee resigns — or is discharged — from a job, is the employer required to pay the employee for any accrued, unused vacation time?

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When an employee resigns — or is discharged — from a job, is the employer required to pay the employee for any accrued, unused vacation time?

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Whether an employer is obligated to pay for unused time depends upon the terms of the vacation and/or resignation policy. New York courts have held [in Glenville Gage Company, Inc. v. Industrial Board of Appeals of the State of New York, Department of Labor, 70 AD2d 283 (3d Dept 1979) affd, 52 NY2d 777 (1980)] that an agreement to furnish benefits or wage supplements, such as vacation, can specify that employees forfeit accrued benefits under certain conditions. To be valid, the employer must have notified employees, in writing, of the conditions that nullify the benefit.

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