I believe that if the employee manual states all employees get X amount of vacation then the employer must pay the unused vacation amount to an employee when they get laid off. The link below has the federal telephone number to confirm. I don't think, unless you negotiated something different, that the employer can substitute one for another.....UNLESS YOU NEGOTIATED AND PUT IN WRITING. Each state has different laws but the link is for North Carolina. Sherry http://www.nclabor.com/wh/fact sheets/promisedwages.htm Once a promise is made by an employer, then the employer must pay all promised wages, including wage benefits, accruing to its employees based on any policy, agreement or practice that the employer has established. And pursuant to N.C.G.S. 95-25.13(2) of the WHA, the employer must: "Make available to its employees, in writing or through a posted notice maintained in a place accessible to its employees, employment practices and policies with regard to promised wages." And an employer must comply with its own wage payment agreements until such time as the employer changes its policy in writing in compliance with N.C.G.S. 95-25.13(3) of the WHA. Such reductions to earned wages, including earned wage benefits, cannot be made retroactive. In other words, the notification of the reduction in promised wages cannot take away pay or wage benefits that have already been earned up to the date of the notification. Any reduction in pay or wage benefits must be prospective from the date of notification. Please review on-line our fact sheet on Changes/Reduction in Wages for more information. Earned vacation pay, commissions, and bonuses cannot be forfeited unless the employer has a written forfeiture clause in its vacation, commission, or bonus policy or termination policy pursuant to N.C.G.S. 95-25.13(2) of the WHA. Keep in mind that vacation pay, commissions, or bonuses have to be earned, regardless if a verbal promise or a written policy, before an employer has to pay them at all. Also, even if there is a written policy that has a written forfeiture clause, an employee may still be due the earned vacation pay, commissions, or bonuses at termination. It all depends on the language of the forfeiture clause and the reason/s the employee's employment was discontinued, and if the reason/s meet the criteria in the written forfeiture clause. Please note that the North Carolina Department of Labor (NCDOL) takes the position that sick leave does not have to be paid at termination even if there is no written forfeiture clause unless the policy actually states that sick leave will be paid at termination or there is the practice of such payments.
