Paid Time Off Law Changes

Effective August 1, 2011, state law regarding the handling of paid time off upon separation from employment has changed.

Previously, once paid time off was made available for an employee’s use, any unused portion of such time was considered wages upon separation from employment and was to be paid at the regular rate of pay earned prior to separation.

The newly added section of law, N.D.C.C. 34-14-09.2, specifies:

If an employee separates from employment voluntarily, a private employer may withhold payment for accrued paid time off if:

At the time of hiring, the employer provided the employee written notice of the limitation on payment of accrued paid time off; The employee has been employed by the employer for less than one year; and The employee gave the employer less than five days’ written or verbal notice.