Employee quits: Does he get vacation pay?

By Raymond Dreyfack -- Plant Engineering, 5/1/1999

Good riddance, Maintenance Foreman George Vivaldo thought when informed by Utility Man Chuck Dedrick that he had decided to quit. To state the case euphemistically, Dedrick was no bargain. In fact, in response to Dedrick's offer of 2-wk notice, Vivaldo told the worker he could clock out right then and there.

"Your final check will be mailed."

Dedrick shrugged and grinned. "Whatever you say, boss."

Four days later, having received his check, Dedrick was back at the foreman's desk, an angry look on his face.

"What kind of ripoff is this?" he demanded, producing the check. "My vacation pay isn't included. I'm entitled to 2 wk."

"You're entitled as long as you're an employee. Once you quit, you no longer work here."

"No way!" Dedrick protested. "Vacation pay is part of my regular salary."

Vivaldo disagreed. "Vacation is a fringe benefit like holidays or a turkey at Thanksgiving. When you leave, you're cut off from fringe benefits just as you are from wages."

"We'll see about that," Dedrick threatened.

Question: Does Dedrick have a valid claim to vacation pay?

Murdock's verdict: "Give Dedrick his vacation pay," Plant Engineer Phil Murdock ruled when informed of his threat. " Even though you let him go when he resigned, he complied with company policy in giving notice at that time. Since he wasn't fired for misconduct or poor performance, vacation time must be regarded as deferred compensation and cannot be denied."