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MASSACHUSETTS SUPREME COURT TAKES …

_____ MASSACHUSETTS SUPREME COURT TAKES tough STANCE ON VACATION PAY BY: GEORGE L. CHIMENTO JUNE 15, 2009 _____ 1. INTRODUCTION MASSACHUSETTS employers should review their vacation and paid time off ( PTO ) policies, to be sure they comply with a recent MA SUPREME COURT decision, Electronic Data Systems Corporation vs. Attorney General & Another, SJC 10260 (the Decision ). 1 The COURT ruled that EDS, a MASSACHUSETTS employer, must pay for accrued vacation time when it terminates an employee. An employer policy which defined unused vacation time as unearned and forfeitable was declared void. The COURT upheld an Attorney General citation requiring EDS to pay the vacation accruals plus a 20 0% penalty. This article reviews the Decision, and what employers should do so that they administer vacation and PTO policies appropriately in MASSACHUSETTS .

massachusetts supreme court takes tough stance on vacation pay by: george l. chimento june 15, 2009 _____ 1.

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