Does Your Employer Have to Pay You for Unused Vacation Time in Massachusetts?

Massachusetts Law on Vacation Time Payout

Under Massachusetts law, employers must pay out any unused vacation time when an employee quits or is terminated. Employers are not required to pay out unused vacation time if the employee does not take the vacation within 18 months of accrual or before the last day of employment.

Understanding the Vacation Pay Requirements

Massachusetts employers who provide vacation benefits must follow specific laws. Withholding Vacation Payments is Illegal. Under Massachusetts law, employers who choose to offer their employees paid vacation must treat such payments as wages.

Key Points on Vacation Time when Leaving a Job

  • In Massachusetts, employers are not required to provide paid vacation leave. But if vacation time is offered, it must follow Wage Act requirements as a form of wages.
  • Under the Wage Act, employers must pay out unused vacation time when an employee leaves, as long as it was earned and the employee meets eligibility criteria.
  • Eligibility for payouts differs between full-time and part-time staff. Contract and temporary workers sometimes don’t qualify. Check your employee handbook for details on your company’s specific policy.

Law on PTO and Sick Time in Massachusetts

Massachusetts requires employers with 11 or more employees to provide earned sick time. Employees accrue 1 hour of sick time per 30 hours worked, up to 40 hours per year.

Paid sick time covers care for an employee’s own health needs or to care for a family member. It applies to full-time, part-time, temporary and seasonal staff. Employees can use sick time in hourly increments.

Leave a Comment