Articles Posted in Vacation Pay

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Federal and state laws have been put in place to protect employees and to make sure that they are all paid fair wages for the work that they perform. These laws provide minimum wages and dictate how many hours an employee can work within a certain period of time before they are entitled to the proper overtime compensation of one and one-half times their normal hourly rate. Some states require employers to provide their workers with meal and rest breaks, but there are no laws which require employer to provide paid vacation time.

However, under California law, if an employer has a policy which includes paid vacation time, then such paid time is considered wages, and as such, the employer is required to pay it. According to California labor law, “earned vacation time is considered wages, and vacation time is earned, or vests, as labor is performed. For example, if an employee is entitled to two weeks of vacation per year, after six months of work he or she will have earned five days of vacation. Vacation pay accrues as it is earned, and cannot be forfeited, even upon termination of employment, regardless of the reason for the termination.” A former employee of Walt Disney Worldwide Services Inc. filed a wage and hour class action lawsuit alleging that the entertainment company failed to provide employees with accrued paid vacation time upon termination of the worker’s employment.

Reykeel Zorio was hired by Disney in November 2011. Soon afterwards, he was assigned to work at the Disney Resort it Burbank California. Continue reading

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Paying your employees all of their earned wages is not always enough. Companies also need to ensure that each employee is provided with written notice of all hours worked, as well as wages earned, in order to be in full cooperation with the law. Workers of a warehouse in Will County, Illinois have filed suit against, Prologistix, the company that employs them, for allegedly cheating the workers out of earned wages.

The employees have been working in a Kraft/Cadbury warehouse in Joliet. They claim that they worked hard to make sure Kraft got the products they needed to the shelves on time. However, despite their hard work, the lawsuit alleges that workers were denied their vacation pay and were never given written notifications of their wage rates.

Warehouse Workers for Justice, a Chicago-based organization, is aiding the warehouse workers in their lawsuit. A report released last year by the Warehouse Workers for Justice showed that 63% of warehouse workers are temporary employees, earning poverty wages and few benefits.

Abraham Mwaura, a coordinator for Warehouse Workers for Justice, says that the “perma-temp issue … is what it really comes down to. When you have that many temps, it just opens it up for abuse.”

Prologistix denies the allegations, saying that its treatment of its workers has always been consistent with federal and state laws.

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