Remaining Vacation Upon Termination Policy

Note: The treatment of accrued, unused vacation at termination is governed by state law, and that law varies significantly by state. In some states (for example, California, Colorado, Illinois, Montana, and Nebraska), earned and unused vacation is legally considered a wage that has already vested; it cannot be forfeited for any reason, including lack of notice, and must be paid out upon separation regardless of whether the employee resigned, was terminated, or gave notice. Where applicable state law requires payout of accrued, unused vacation, that law controls and this policy will be administered consistently with it, notwithstanding anything below to the contrary.

Where not otherwise required by state law, if an employee is terminated for a reason other than willful misconduct or resigns and gives the company a minimum of two weeks notice (or three weeks for office staff) they will be entitled to receive up to a maximum of ten days (10 days or one pay cycle) of compensation as severance pay.

In cases where an employee gives notice to resign, the employee may not use vacation during their resignation period. If vacation is used during the resignation period, the used amount will be deducted from the Severance leave amount.

This severance compensation will be either included in your last paycheck or paid with the following weeks Company payroll at the Company’s discretion, subject to any state law requiring earlier payment of final wages.