Is Accrued Unused Vacation Subject To Forfeiture In Maryland?
As we advised in an E-lert this month, the recent unreported Maryland Court of Special Appeals decision in Catapult Technology, Ltd. v. Wolfe held that a company policy that provided for forfeiture of accrued unused vacation at termination violated the Maryland Wage Payment and Collection Act. The decision was a surprise, contradicting a reported decision of the U.S. District Court for the District of Maryland on the topic. The outcome also is at odds with information on the web site of the Maryland agency charged with interpreting and enforcing the wage laws. We have learned that the decision will not be appealed. Despite the fact that unreported decisions are not binding precedent, the decision for now is the only pronouncement of a Maryland State appeals court on the topic. Inevitably, plaintiffs’ lawyers and employees who are aware of the decision will rely on it in demanding pay for accrued unused vacation upon termination or at year’s end (in the case of “lose it or use it” vacat
Related Questions
- When employees resign -- or are discharged -- from a job, must the employer pay them for any accrued, unused vacation time?
- Is an employer required to pay an employee unused vacation or other accrued leave upon termination of employment?
- What happens to vacation time that is accrued and unused and is over the maximum accrual limit?
