We are a small North Carolina business with 7 employees who receive paid vacation. If an employee quit before using his vacation do I have to pay him for unused vacation?
You are not required to provide vacation leave. However, if you do, then you must pay out any accrued and unused vacation to the employee at the time of the last paycheck. The only exception is if you have a written policy that you provide to employees which clearly states that such unused vacation is forfeited upon terminaiotn.
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