Many employers are making difficult decisions regarding employees and COVID-19. Some of them are engaging in widespread layoffs due to reduced revenue streams. Despite this, Massachusetts law still remains clear as to employer obligations to pay for all hours worked and any accrued and unused vacation leave, on the last day of employment, under these circumstances.

Does my Massachusetts employer have to pay my accrued vacation on my last day of work if I am laid off due to COVID-19/coronavirus?

Yes. According to Massachusetts law, accrued vacation is considered a ‘wage,’ and is thus covered by the Massachusetts Wage Act. That Act requires employers to pay all accrued wages on the last day of work, unless the employee voluntarily quits. As stated by the First Circuit: “[The Wage Act] says what it means and means what it says . . . An employee who does receive her due wages by the [day of her discharge] — even an employee who is paid in full a day later — suffers a cognizable injury within the purview of the statute.”

Does my Massachusetts employer have to pay me my accrued vacation on my last day of work if I am laid off due to COVID-19/coronavirus even if the layoff may be temporary?

Yes. In this context a layoff is a layoff. No difference between one that (may be) temporary and one that is permanent.

Can my Massachusetts employer pay me late if they are shut down or laying off due to COVID-19/coronavirus?

No. Employers must pay all wages owed to employees (including vacation) on the last day of work, unless the employee resigns.