H.295 is a bill introduced in the Vermont General Assembly that mandates employers to pay employees for any unused accrued vacation leave upon their separation from employment, whether the separation is voluntary or involuntary. The bill amends current law regarding the payment of wages, specifically modifying the language in 21 V.S.A. § 342. It clarifies that the final payment of wages must 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 several adjustments to the existing language regarding wage payment timelines. It specifies that employees who voluntarily leave employment will be paid on their last regular payday or the following Friday if no regular payday exists. For those who are discharged, payment must be made within 72 hours following the discharge. The bill is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 21-342