What are the rules for vacation pay?
In Washington, the rules for vacation pay are governed by the Washington Minimum Wage Act. Employees are not legally required to be given vacation time and vacation pay, but if an employer chooses to give it, certain regulations must be followed. Any employee who has worked for the same employer for at least 12 consecutive months and has earned at least 1,250 hours of service in the previous 12-month period is eligible for vacation pay. Vacation pay must be at least equal to the employee’s normal rate of pay, and can either be the amount earned in the most recent pay period or an amount mutually agreed upon between the employer and employee. Employers must also keep records of vacation pay hours, vacation pay rates, and other details related to vacation pay for at least three years. Additionally, upon termination of employment, an employee is entitled to receive any accrued vacation pay that has not been used. Finally, Washington State does not require employers to pay out vacation pay upon termination, but can make arrangements with the employee to do so. Employers who do not follow these requirements may be subject to penalties and be required to pay back wages to employees.
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