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Maryland Enacts New Law Limiting the Payment of Accrued Leave Upon Termination.
Maryland recently amended its Wage Payment and Collection Law, Md. Code §§ 3-501et seq., in a manner that affords employers a powerful statutory defense to employee lawsuits for monetary compensation and/or trebled damages for not compensating a departing employee on termination for accrued unused leave. As amended, the Maryland law now provides that an employer's written leave policy will dictate whether or not the employee is entitled upon termination to recover accrued unused leave provided the leave policy was communicated to a new employee at the time of hire. It provides no shield to employers that do not have a written policy that limits compensation for accrued leave to a terminated employee.
