The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
Payment of Fringe Benefits at Termination
An employer shall pay fringe benefits to or on behalf of an employee in accordance with the terms set forth in the written contract or written policy.
An employer shall not withhold a payment of compensation due an employee as a fringe benefit to be paid at a termination date unless the withholding is agreed upon by written contract or a signed statement obtained with the full and free consent of the employee without intimidation or fear of discharge for refusing to agree to the withholding of the benefit.
An employer shall pay fringe benefits due an employee at termination on the regularly scheduled payday for the period in which the termination occurs, unless otherwise specified in the terms of a written contract or written policy.
The employer is required to pay fringe benefits in accordance with written contract or written policy, if the company policy has a pay-out provision which states that unused time will be paid to you when you separate your employment, then the employer would be obligated to pay you for the unused time.
The employer would not be legally obligated to pay you for unused time if the company policy does not address the issue.