KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** do you have to pay unused and unpaid benefits or commission upon termination May 29, 2026 ************************* do you have to pay unused and unpaid benefits or commission upon termination ************************* Ken I have a legal question regarding payout of unused vacation PTO upon termination. I just want to make sure we are doing the right thing. Our current situation is in Texas. Our HR company has told us which states require payout of vacation PTO upon termination. This was their response: An employer must honor company policy that requires the value of accrued vacation time to be paid to a separated employee. My question is if our employment agreements and company handbook state the company pays out unused vacation time at the end of the year would that be considered a promise of payment for a terminated employee? Our agreements also state that all benefits and forms of compensation end upon termination. I just want to make sure we are doing the correct thing legally. Please let me know. Thank you. Name withheld ************************ Response ************************ Unless governed by law otherwise the employment terms and conditions are governed by the terms of the employment agreement. Threshold question is whether the "agreement" is in writing or a handshake. If no writing then it's going to be difficult to overcome the parting employee's perception of the terms of employment; in other words, if the employee believes he is entitled to be paid for unused vacation time then you will have to overcome that position. If the employment terms are covered in an Employment Agreement [and I urge everyone to have every employee sign a K&K Employment Agreement] then it will be the departing employee's burden to overcome the clear provisions of the written agreement. Handbooks are more detailed than an Employment Agreement, getting into all the details of day to day employment. If signed by the employee and clear enough it should govern the relationship. Here's a pretty good example of clarity of words. You state your handbook states "all benefits and forms of compensation end upon termination". You may think that is clear, but it clearly is not. How so and how could it be clearer? Let's stick with the framework of your language and let's try to make it clearer, or in legal terms, unequivocal. "all unpaid benefits and forms of compensation other than the employee's regular paycheck for the week [or for whatever period it is regularly paid], accrued or unaccrued, end upon termination and will not be paid. Any unpaid commission shall not be paid, whether earned or unearned, collected by employer or not, will not be paid." There's no magic to the above suggested language and with a little more thought you can probably be more eloquent. So could K&K Employment Lawyers, but you'd need to engage K&K for that or if a Concierge Client use your free monthly consult time. Join the Concierge Program today if not member. Cost of the program is likely to increase soon, so be grandfathered in at current rates. ************************ STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
