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Committee reviews bill by Rep. Brett Greer to require payout of accrued vacation at separation
Summary
Representative Brett Greer's bill H.295 would require employers to pay employees for accrued but unused vacation time when they separate from employment; the committee discussed definitional issues (accrual, bundled PTO, notice) and asked for testimony before advancing the measure.
Representative Brett Greerintroduced H.295 to the House General & Housing Committee Wednesday, a short bill that would require employers to include accrued but unused vacation pay in an employee's final paycheck after separation.
Sophie Zadatni, legislative counsel, walked the committee through the measure and clarified its limited scope: the bill would require payout for vacation time already "accrued" but not used; it would not mandate employers to provide vacation or to pay out sick leave. "If an employee has already earned but not used vacation time, if they leave, whether voluntarily or involuntarily, they then would receive that in their final paycheck," Zadatni told the committee.
Why it matters: current employer practices vary. Some employers pay out accrued vacation on separation, others do not; some use banked or bundled paid‑time‑off policies that mix vacation and sick leave. Committee members said the bill raises several implementation questions that would affect small businesses and employers with differing accrual and rollover rules.
Key points from the discussion
- Scope and definition: Counsel and committee members noted the bill does not define "accrued" in statutory detail. Several members asked how the bill would apply to employers who provide banked or bundled paid time off (PTO) or to policies that only grant leave on a quarterly basis.
- Not a mandate for paid leave: The committee emphasized that the bill does not require employers to provide paid vacation; it only requires payout of time already accrued under an employer's policy or contract.
- Operational concerns: Members suggested possible clarifications lawmakers have used in other states, such as requiring employers to notify employees of their payout policy or setting a default rule that unused accrued vacation is payable unless an employer has provided a clear policy otherwise. Committee members also discussed a phased implementation or delay to allow employers time to update handbooks and payroll systems.
Process and next steps
Committee members agreed that the measure would require outside testimony to resolve definitional and enforcement questions, including how the law would treat unlimited PTO plans, capped rollover policies, and union contracts. The committee did not take a vote Wednesday and asked staff to schedule testimony before advancing the bill.
Ending
H.295 remains pending; the committee requested witnesses and additional drafting work to clarify accrual definitions and to explore notification or phased‑in implementation options for employers.
