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Committee hears bill to require payout of earned vacation at separation; proponents stress worker security, employers warn costs
Summary
Sponsor Rep. Travis Nelson and worker groups urged the committee to require employers who offer paid vacation to pay out earned, unused vacation at separation (100% pay, capped at 300 hours mandatory payout). Business groups warned of cash‑flow impacts and drafting issues; committee members pressed on notice, caps, small‑employer exemptions and PERS effects.
The House Labor and Workforce Development Committee heard testimony Feb. 4 on House Bill 40 94, a bill by Rep. Travis Nelson that would require employers who provide paid vacation to pay separating employees 100% of earned but unused vacation at termination.
Rep. Nelson said the bill is intended to treat vacation as earned compensation, not a discretionary benefit. He described prior iterations that included sick leave and said recent changes removed sick pay and added flexibility for employers; the dash‑1 amendment posted on OLIS maintains a statutory accrual of up to 350 hours while capping…
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