Lee v. Fresenius Medical Care, Inc., (Minn 2007)
Articles Discussing Case:
Minnesota Supreme Court Issues Decision in Vacation-Pay Case.
Fredrikson & Byron, P.A. • January 10, 2008 • Report Link
On November 15, 2007, the Minnesota Supreme Court issued the long-awaited decision in the vacation-pay case, Lee v. Fresenius Medical Care, Inc. As you may remember, the Minnesota Court of Appeals determined last year in Lee v. Fresenius that the employee should have been paid for her accrued and unused vacation pay upon termination of employment, despite the employer’s vacation pay policy that made her ineligible for payment because she was terminated for misconduct. The Minnesota Supreme Court reversed that decision.
Minnesota Legal Update - Employers May Contractually Decide If A Terminated Employee Is Eligible To Receive Vacation Pay.
Ford & Harrison LLP • November 26, 2007 • Report Link
Last year, the Minnesota Court of Appeals issued a controversial decision in Lee v. Fresenius Medical Care, Inc. In the Lee case, the employer had a written policy stating that an employee would receive any earned and unused Personal Time Off (“PTO”) benefits provided: (1) the employee was not terminated for misconduct; or (2) the employee provided the company with sufficient notice regarding the employee’s voluntary resignation. The employer elected not to pay Ms. Lee her earned, but unused PTO benefits because she was terminated for misconduct. Ms. Lee challenged this policy, arguing that such earned, but unused PTO benefits constituted “wages” under Minn.Stat. § 181.13(a), and therefore must be paid at the time of her termination. The Minnesota Court of Appeals agreed.
Minnesota Supreme Court Rules In Vacation Pay Case.
Fredrikson & Byron, P.A. • November 19, 2007 • Report Link
On November 15, 2007, the Minnesota Supreme Court issued the long awaited decision in the vacation pay case, Lee v. Fresenius Medical Care, Inc. In the case, the Minnesota Court of Appeals determined last year that the employee should have been paid for her accrued and unused vacation pay upon termination of employment, despite the employer’s vacation pay policy which would have made her ineligible for payment because she was terminated for misconduct. The Minnesota Supreme Court yesterday reversed that decision. In light of the Minnesota Supreme Court decision, company policy can and will determine when an individual is entitled to payment for accrued and unused vacation or payment for other accrued paid time off upon resignation or termination.
