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Article: Minnesota Supreme Court Rules On Employers Vacation Pay Liabilities.
- Article from:
- Mondaq Business Briefing
- Article date:
- November 27, 2007
CopyrightCOPYRIGHT 2007 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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On November 15 2007, the Minnesota Supreme Court decided Lee v. Fresenius Medical Care, Inc. (Case No. A05-1887, 2007 WL 3378653), resolving in favor of employers the question whether an employer is required to pay out all accrued vacation and paid-time-off (PTO) to terminating employees in all cases. The Court held that this issue is purely a matter of contract between the employer and employee, such that an employer need not pay out unused vacation and PTO in accordance with its internal written policies.
In Lee, the court construed a company's PTO pay-out policy in light of Minnesota Statute Section 118.13(a), which makes wages "actually earned and unpaid at ...