N.D.: New Law Limits Separation Pay

By Diane Cadrain Jun 10, 2015

North Dakota lawmakers this year enacted a new law affecting separation pay.

Starting on Aug. 1, 2015, North Dakota employers will no longer be required to include payment for paid time off with other separation pay if the paid time off was awarded by the employer but not yet earned by the employee; and, if before awarding the paid time off, the employer provided the employee written notice of the limitation on payment of awarded paid time off.

Until this change North Dakota law has allowed forfeiture of paid time off on termination only if the employee left the job voluntarily, had been working for less than a year, gave less than five days’ written notice of the intent to leave and had been notified that forfeiture under these circumstances was the policy.

This year’s new law adds another situation to the list stating when employees may forfeit such pay and employers may avoid the payout.

Diane Cadrain is an attorney who has been writing about employment law issues for over 20 years.


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