I am from time to time asked by both employers and employees if a Tennessee employer must pay an employee for her "accrued" but unused leave days when she quits or is discharged. There seems to be an assumption by most people who ask the question that if the paid leave days are accrued as opposed to advanced, the employee must be paid for them. Surprisingly, the answer to the question is not what most people expect.
In Our Judgment
Providing insight on developments in labor and employment law affecting East Tennessee employers and employees.
I regularly represent both employers and employees in litigation concerning terminations of employees for misconduct or unsatisfactory performance. On occasion, I am also asked to mediate such disputes. After 28 years, you begin to recognize where the “trigger events” leading to lawsuits lurk.
Not too long ago a client manager and I were reviewing workplace policies relating to employee use of the employer's computer system. Employers often have a number of policies or handbook statements on this topic ranging from protection of the employer's confidential information, to prohibitions on sexual and other forms of unlawful harassment.
The Tennessee Supreme Court very recently issued a decision addressing whether an employer that refuses to hire a job applicant because of her past workers’ compensation claims with another employer violates the Tennessee workers compensation statutes and can be sued for "retaliatory failure to hire."
Most private sector employees in Tennessee are classified as “employees at will.” That means the employment relationship can be terminated by either the employer or employee at any time, without notice and for any reason that is not illegal or against public policy (i.e., not involving race, gender, disability or age discrimination, etc.). Thus, absent some contractual provision to the contrary, employees classified as “at will” can walk out at any time and bear no legal responsibility for losses sustained by their employer as a result of their sudden absence.