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Does my employer have to pay me unused accrual time if I am laid off from work?
Public Act 390 defines vacation pay and sick pay as fringe benefits pursuant to the employer’s written policy or contract.
In addition to the Paid Medical Leave Act, the Wage and Hour Division enforces Public Act 390, the Payment of Wages and Fringe Benefits Act. Under Act 390, fringe benefits are defined as time off for personal reasons or vacation pay, sick pay, holiday pay, bonuses and authorized expenses pursuant to the employers’ written policy or contact.
An employer must follow its written agreement covering fringe benefits and should not change a written policy retroactively, but it can change a written policy going forward.