Today, many misconceptions exist about vacation pay. The number one misconception is that your employer is required to pay you for the time you spend on vacation. There is no law requiring that an employer pay for your vacation time. In fact, an employer can dictate when you may take your vacation in addition to having no obligation to pay you for the time spent on vacation. If on the other hand, your employer pays you for vacation time, there are a number of important things to be aware of. First, your employer’s policy governs whether or not your vacation pay will carry over from year to year. There is no law providing otherwise. This means that if your employer’s policy says that vacation time will not be carried, then it will not be carried over from year to year. Second, Maryland law, now provides that any accrued vacation pay must be paid upon your termination unless you were informed in writing at the time of hiring that unused vacation pay will be lost or forfeited upon termination. http://www.dllr.state.md.us/labor/wagepay/wpunusedvacpay.shtml Third, even if you have vacation pay that carries over from year to year, generally, sick pay will not carry over from year to year and you will not be entitled to it at termination. http://www.dllr.state.md.us/labor/wagepay/wpunusedsick.shtml. Lebau & Neuworth has successfully litigated claims when employers tried to deprive their employees of accrued vacation and sick pay benefits. In a recently settled case, Lebau & Neuworth obtained more than $120,000.00 for a group of employees wrongfully denied vacation pay after termination. The case was brought under the Maryland Wage Payment & Collection Law.
