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New Maryland Law Restricts Payment Of Accrued Leave Upon Termination

Published by on May 13, 2008

The Maryland General Assembly has passed, and the Governor approved, a bill amending the Maryland Wage Payment and Collection Law to provide that employers may prohibit employees from receiving accrued leave upon termination of employment, provided that the company has a written policy to that effect and the employee receives the appropriate notice as provided […]

The Maryland General Assembly has passed, and the Governor approved, a bill amending the Maryland Wage Payment and Collection Law to provide that employers may prohibit employees from receiving accrued leave upon termination of employment, provided that the company has a written policy to that effect and the employee receives the appropriate notice as provided in the statute.  The text of the new law is here.

Note that in order for an employer to deny payment of accrued leave benefits upon termination it must have in place a written policy to that effect and it must give notice of leave benefits at the time of hiring.  If the employer does not do so, the accrued leave benefits arguably should be paid upon termination as “wages” under the Maryland Wage Payment and Collection Law.

Hat tip to the Maryland Employment Law Blog.

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