Do we have to pay unused time off?

Is there any legal obligation to pay an employee for their unused but accrued time bank balance? This includes sick leave, personal time, vacation, etc. Basically everything an employee would need to take off work. The employees accrue so many hours each payroll.

When time is accrued by payroll period, it would seem to belong to the employee. If that is not your intention, then it should be specifically spelled out.

Rita Risser's response:

Many companies used to have separate vacation and sick time policies. In one case, a company had a vacation plan that said if you didn't take vacation you would be paid for unused time at termination. Their sick leave plan did not pay for unused time. Then the company combined the plans. The California Supreme Court said all the money had to be treated as time accrued to the employee and the employees did have the right to cash out their unused time.

You should talk with a local attorney to figure out what is right in your case.

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