Article: ACTING ATTORNEY GENERAL MOORE ISSUES OPINION REGARDING EMPLOYEES' ENTITLEMENT TO UNUSED VACATION PAY UPON TERMINATION OF EMPLOYMENT

The Tennessee Attorney General issued the following opinion:

Opinion No. 06-169

Employees' Entitlement to Unused Vacation Pay upon Termination of Employment Pursuant toTenn. Code Ann. sect. 50-2-103(a)(3)

QUESTION

Whether Tenn. Code Ann. sect. 50-2-103(a)(3) requires that an employee's final wages include unused "vacation pay or other compensatory time" upon the employee's termination of employment?

OPINION

No. Unless the employer's policy or its labor agreement specifically requires compensation of unused "vacation pay or other compensatory time" to an employee upon his or her termination of employment, Tenn. Code Ann. sect. 50-2-103(a)(3) does not require that an employee's final wages ...

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