House committee adopts amendment requiring payout of accrued vacation on termination

The House Committee on Labor and Workforce Development on Feb. 16 adopted an amendment to House Bill 4094 that would require employers, under an employment contract or employer policy, to pay accrued but unused paid vacation time when an employee is terminated.

Erin, committee staff, told members the dash-2 amendment replaces the measure and requires payment of earned or accrued but unused paid vacation time on termination “in accordance with existing timelines for payments of wages on termination of employment.” She also said the Office of Legislative Fiscal Analysis expects an impact to the Bureau of Labor and Industries and a corresponding General Fund impact.

Vice Chair Munoz moved adoption of the dash-2 amendment and the motion passed after brief discussion and a roll call. Representative Nelson thanked stakeholders and workers who engaged on the bill and said the base bill will receive further work in an interim work group. After adopting the amendment, the committee voted to recommend HB 4094 as amended with a due-pass recommendation and to refer the measure to the House Committee on Ways and Means.

The committee record shows the amendment was adopted on voice/roll call and the main motion to advance the bill as amended carried. The chair said she will establish a formal interim work group to continue conversations about the bill’s remaining financial and policy concerns.

The committee did not take up further substantive changes to the base bill during the session; the next procedural step is referral to Ways and Means for fiscal review.