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Does an employer have to pay for vacation time accrued to employees they have laid off?

Great Mills, MD |

Family owned business is slowly fading and they have laid off most employees. When those employees started, they worked for a year before they received vacation time. They had vacation time on the books when laid off. Since this time was earned by their work the previous year, are the employers legally liable to pay them for it? The employees had no 'employment contract' with the employer, but the leave was part of their employment conditions.

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Attorney answers 2


If the employer has a written policy that provides that accrued vacation will not be paid out upon termination of employment, you are not entitled to be paid. Otherwise, your accrued, but unused vacation is considered wages and your employer is required to pay you within the pay period immediately following the end of your employment. Failure to wages in Maryland is covered by the Maryland Wage Payment and Collection Law which entitled you to treble damages and attorneys' fees. If you have any further questions, please contact me, Neil Hyman, Law Office of Neil S. Hyman, LLC, 301-841-7105,


This is an interesting question. The Maryland Wage Payment and Collection Law will often consider accrued vacation time as earned wages and therefore payable upon termination. I'd have to know more facts. If you're interested in talking about this issue further, please call me at The Zipin Law Firm, LLC (301) 587-9373. Thank you, Gregg C. Greenberg, Esq.

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