The bill H.295 proposes to amend the current labor laws in Vermont to require employers to pay out any unused accrued vacation leave to employees upon their separation from employment, regardless of whether the separation is voluntary or involuntary. The amendment specifically modifies Section 342 of Title 21, which governs the weekly payment of wages. It introduces new language that mandates the inclusion of unused vacation leave in the final payment to employees who leave their jobs.

Additionally, the bill makes several adjustments to the existing language regarding payment timelines for employees who leave or are discharged. It clarifies that employees who voluntarily leave will be paid on their last regular payday or the following Friday if no regular payday exists, and it specifies that discharged employees will receive their final payment within 72 hours following their discharge. The bill is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 21-342