Troy Employment / Labor Attorney.
There is no law that requires the employer to pay unused vacation pay unless the employer has a policy of doing so. The Michigan Payment of Wages and Fringe Benefits Act provides that an employer shall pay in accordance with the policy in effect. If the policy provides for an employee to be entitled to unused vacation at time of termination, the employer has to pay. If there is no such policy, the employer does not have to pay.
1 lawyer agreed with this answer
Under the Michigan Payment of Wages Act, an employee who is terminated shall be paid immediately as soon as the amount can be determined with due diligence. Contact the Michigan Department of Labor for information and assistance.
1 person marked this answer as helpful
At the present time, this practice by the employer is legal. While legislation has been introduced to prohibit this practice, it has not been passed and it is unlikely such legislation will be enacted in the future.
The Michigan Payment of Wages and Fringe Benefits Act governs the payment of wages in Michigan. The Act is administered by the Michigan Department of Labor. Contact the department about filing a claim. The department will investigate.