Class Action...Fired Employees Entitled to Vacation Pay?
In June, over 467,000 jobs were cut by employers, driving the unemployment rate up to a 26-year high of 9.5 percent. From General Motors to Microsoft to General Electric, most if not all business sectors are struggling to handle the lingering economic downturn. But along with the terminations come questions related to earned income, specifically issues of accrued vacation time. Courts throughout the country are examining corporate policies and contracts to determine whether fired employees are receiving all of the compensation they deserve.
The Supreme Judicial Court of the Commonwealth of Massachusetts ruled earlier this month that fired workers are entitled, under state wage law, to compensation for unused vacation time. The decision comes after Attorney General Martha Coakley challenged the decision of Electronic Data Systems ("EDS") to deny a terminated employee owed vacation time.
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