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Court Holds That Vacation Pay Is “Wholly Contractual”

Published on November 21, 2007

In an opinion dated November 15, 2007, the Minnesota Supreme Court held that employer liability for vacation pay upon termination is "wholly contractual."    The court stated that "when employers choose to offer paid time off as a benefit, employers and employees can contract for the circumstances under which employees are entitled to paid time off and payment in lieu of paid time off, so long as the contract provisions are not prohibited by or otherwise in conflict with a statute." The c...

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