Benefits and Compensation

Must Former Employee Be Paid for Unused Vacation and Sick Time?

By Kevin J. Skelly, JD

The U.S. District Court for the District of New Jersey recently heard a former employee’s claim that he wasn’t paid for unused vacation and sick time. This case highlights a common issue faced by many employers.

James Barrett worked as a part-time assistant manager at a Walgreens store in New Jersey. In response to a coworker’s complaint about him, Walgreens decided to transfer Barrett to a different store.

Barrett resigned, claiming he was transferred to a less desirable store, where he would work fewer hours and have less job security. He then sued Walgreens, alleging, among other things, that it failed to pay him for unused vacation and sick time he had accrued during his employment.

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