My husband owns a small business. Typically we offer 1 week paid vacation after an employee has worked with us for 1 year. Last year due to the economic failure we were unable to do so -- and unfortunately this year as well. We informed the employees of this matter and assured them that when we were able we would again provide this benefit. An employee just quit and is mad he didn't get his vacation time he earned. Are we liable to pay him for this? Thank you for your help.
Paid vacation leave is not a legally required benefit for small employers. Employers with 50 or more employees are required to provide leave under the Family and Medical Leave Act. These resources provide employers with information on how to comply with FMLA.
However, if you and your employee signed an employment contract that states the will receive paid leave, they may have legal right to that claim. I suggest you contact a small business lawyer to fully understand your options and responsibilities.
Read more: How to find legal representation for your small business
If it is in the employment contract, you must provide that benefit or allow them to cash it out. A verbal agreement is also somewhat binding but there has to be sufficient evidence that such an agreement was in place. Evidence can be anything such as recorded calls, e-mails or written statements.
NicoleD | Former Moderator | 6/18/2010 - 5:19 pm
CarlLakeside | Creator | 6/23/2010 - 12:15 am
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