Louisiana Law Blog

Over $300,000 Owed Employee in Vacation Pay Upon Retirement

Over $300,000 Owed Employee in Vacation Pay Upon Retirement

Louisiana law requires the timely and prompt payment of all amounts due a discharged, resigning, or retiring employee.  Under Louisiana law, vacation pay is considered an amount due if the employee was eligible for vacation with pay, had accrued the right to take vacation with pay, and the employee had not taken or been compensated for the vacation time as of the date of the employee’s departure.  The recent retirement of Barry Alvarez, Wisconsin’s former head football coach and athletic director, illustrates how accrued but unused vacation can add up. In Alvarez’s case, as reported by 247Sports.com, Wisconsin paid him $301,133 for his unused vacation (equal to 1272 hours, more than 31 weeks).  Alvarez’s situation is a reminder to all employers to pay attention to accrued but unused vacation balances.  For more on the Alvarez story, see https://247sports.com/college/wisconsin/Article/Barry-Alvarez-huge-payout-saved-vacation-time-Wisconsin-athletic-director-retire-football-Badgers-167571891/?utm_source=facebook&utm_medium=news_tab&utm_content=algorithm

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