A company in Massachusetts is settling charges by Attorney General Martha Coakley by paying more than $1 million, with additional penalties to the Commonwealth and other costs.
The firm was charged with failing to compensate employees who left the company or were laid off for their vacation time in accordance with their contracts and Massachusetts law, BLR reports. A complaint from one former employee led to an investigation of the company and its actions beginning in 2010.
"Employers that choose to offer vacation time must follow the law and properly compensate employees that have been terminated or separated," said Attorney General Coakley.
The Attorney General's office determined that the firm failed to pay earned vacation wages to more than 1,600 employees from 2008 to 2011. While employers do not have to offer paid vacation time, those who choose to do so in Massachusetts are required to compensate employees for those wages upon their departure, treating them the same as other pay.
Firms should ensure they are aware of all relevant provisions of state law concerning employee benefits and compensation to avoid such problems.
