H.295 is a proposed bill that mandates employers in Vermont to pay employees for any unused accrued vacation leave upon their separation from employment, whether the separation is voluntary or involuntary. The bill amends Section 342 of Title 21 of the Vermont Statutes Annotated, which outlines the weekly payment of wages. Specifically, it introduces new language that requires the final payment to include any unused vacation leave, ensuring that employees receive compensation for their accrued time off when they leave their job.

In addition to the new requirement for vacation pay, the bill also makes minor adjustments to the existing language regarding payment timelines for employees who leave or are discharged. It changes the phrasing around payment timelines, specifying that discharged employees should be paid within 72 hours following their discharge and clarifying the language regarding employees absent from their regular place of employment. The bill is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 21-342