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MASSACHUSETTS SUPREME COURT TAKES TOUGH …
_____ 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.
The Decision defers to 1999 views of the MA Attorney General, expressed in. isoryAdv 99‐1 (the ʺAdvisoryʺ): 1. If vacation time is part of the compensation package, the rights to it accrue just like
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