Regarding the Treatment of Vacation Time upon the Cessation of Employment
| Category: | Wage and Labor |
|---|---|
| Status: | Passed |
| Sponsor: | Representative Amy Roeder, House 125 |
| Session: | 130 |
| Bill #: | LD 225 |
Position:
Opposed originally, but now support (3/2/2022)
UPDATE 4/7/2022: The bill has been signed into law.
UPDATED 3/2/2022: The Committee reconsidered the bill, and the bill sponsor presented a new amendment that knocks the effective date to Jan 1, 2023 and would only impact vacation time from Jan 1, 2023 forward. The bill also only applies to vacation pay and not paid time off. Additionally, it exempts employers with 10 or fewer employees.
UPDATED 1/23/2022: The Committee voted the bill Ought to Pass As Amended along party lines.
Summary:
Representative Roeder of Bangor would amend the law governing the provision of vacation pay on cessation of employment. Under current law, on cessation of employment, if the terms of employment or established practice includes provisions for paid vacations, vacation pay has the same status as wages earned. This bill provides that on cessation of employment all accrued vacation pay must be paid to the employee.