Is an Employee on Extended Lay Off Entitled to Vacation Pay?
Full Question:
Answer:
The Fair Labor Standards Act (FLSA) does not require payment for vacations or holidays (federal or otherwise). Holidays and vacations are generally a matter of agreement between an employer and an employee (or the employee's representative). If you don't have a written contract, the requirement for a paid vacation day may be a matter of interpretation for the courts. Some of the factors, among others, that the court may consider include whether there were any provisions in an employment manual or handbook for vesting of vacation days, whether the vacation time had been accrued, whether a release had been signed by the employee, the status of a laid-off employee in regard to benefits, and whether promises were made concerning vacation days.
You should carefully review your employment agreement, if applicable, and any employee handbook of company policies and procedures to determine your rights and obligations as an employer.
Please see the following IN statute:
IC 1-1-9-2 All legal holidays, except Sundays, shall be paid holidays....
All legal holidays, except Sundays, shall be paid holidays for state
employees. However, the governor may shift to another day the observance of
a legal holiday, except that Martin Luther King, Jr.'s birthday shall be
observed as a holiday on the third Monday in January.
