Relating to payment of employees for time off and vacation leave, making penalties applicable, and including effective date and applicability provisions

The bill provides for an employee who earned paid time off while employed but did not earn vacation, that the employer may reduce the pay for the accrued paid time off by one-third. For an employee who earned both vacation and paid time off while employed, the employer is not required to make payment for the paid time off. The bill prohibits an employer from adopting a policy or practice to deny payment for accrued vacation or accrued paid time off upon the suspension or termination of an employee unless the employee’s employment ended due to misconduct. Misconduct is defined in the department of workforce development’s administrative rules. The bill provides for the calculation and payment of an employee’s accrued paid time off or vacation if the employee is suspended or terminated. The amount of such pay owed to an employee is the amount of pay equal to the accrued vacation or paid time off as if the employee began taking the vacation or paid time off the day the suspension or termination took place, unless otherwise provided in the bill. The bill defines “paid time off” as a benefit allowing an employee to take time off from work with pay without regard to the reason the employee chooses to take the time off. “Paid time off” is also added to the definition of “wages”. Unpaid wages or expenses, along with liquidated damages, court costs, and attorney’s fees, may be recovered by the employee or the commissioner by civil action under Code chapter 91A. An employer who violates Code chapter 91A is also subject to a civil penalty of not more than $500 per pay period for each violation. The bill takes effect upon enactment. The bill applies only to the suspension or termination of an employee’s employment that occurs on or after that date.