[Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date] [Employer's Name] [Company Name] [Employer's Address] [City, State, ZIP Code] Subject: Demand for Reimbursement of Accrued Vacation after Termination Dear [Employer's Name], I hope this letter finds you well. I regret to inform you that my employment with [Company Name] was terminated effective [Termination Date]. As per the provisions stated in [relevant employment agreement or policy], I am entitled to reimbursement for the accrued but unused vacation time that I had accumulated during my tenure with the company. I am writing to formally request the immediate reimbursement of [Number of Days] days of accrued vacation, which amounts to [Vacation Accrual Amount]. The specific details of my accrued vacation time can be found in the attached documentation [if applicable]. I would like to emphasize that under the Arizona labor laws, accrued vacation time is considered earned wages. As such, failure to reimburse these wages promptly is a violation of section [Relevant Section Number] of the Arizona Revised Statutes. It is imperative for [Company Name] to comply with these legal obligations and promptly remit the owed vacation pay. The requested reimbursement should be submitted to me in the form of a certified check or direct deposit to the bank account [Provide Bank Account Details]. I expect to receive the full amount within [Specify a Reasonable Timeframe, e.g., 10 business days] from the date of this letter. Failure to comply with this demand may leave me with no alternative but to pursue legal action to recover the unpaid wages in accordance with the Arizona labor laws. Additionally, I may be entitled to seek compensation for any legal fees incurred during this process. I sincerely hope that we can resolve this matter amicably and without resorting to litigation. If you have any questions or require any further documentation, please contact me at [Your Phone Number] or [Your Email Address]. I anticipate your prompt response and look forward to a timely resolution of this matter. Thank you for your attention to this important issue. Yours sincerely, [Your Name]
Arizona Sample Letter for Demand - Reimbursement of Accrued Vacation after Termination
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FAQ
Arizona law does not require that employers pay out unused vacation time but allows employers to establish their own policy and practice regarding this issue. Arizona law does require that when an employee quits employment, the employer must pay all wages due to the employee within a certain time period.
Neither Arizona's Legislature nor its courts have given any significant guidance regarding an employer's ability to deny or restrict the payment of accrued vacation upon separation from employment. Employers in Arizona are not required to offer vacation time or PTO to their employees.
Under Arizona law, an employer generally must pay unused vacation time after an employee separates from employment if the employee has a reasonable expectation of payment. There is a reasonable expectation of payment if the employer has promised to pay for unused vacation time.
State law. Arizona employment laws don't require employers to pay out unused vacation time, but they do hold employers accountable for any company policies that relate to the final paycheck.
Arizona is an at-will employment state, which means that an employer or an employee can end an employment relationship for any reason or for no reason but not the wrong reason unless an employment contract is in place. Most employees do not have a contract and are considered at-will.
While many states permit employers to impose use it or lose it vacation policies, a few have restricted or banned them, including:Alaska;California;Montana; and.Nebraska.23-Jun-2021
Payout of vacation at termination. In such circumstances, earned vacation will generally be treated as wages pursuant to state wage payment and collection laws. Under Arizona law, employers are required to pay all wages due to employees who leave the job.
As part of an employee's final pay, any unused annual holiday entitlements and alternative holiday entitlements must be paid to the employee. This applies to employees who have retired, been terminated, made redundant, or resigned for any other reason.
At the federal level, no laws require employers to pay employees for unused PTO when they leave the company. Some states have specific PTO payout laws. However, Arizona does not require PTO to be paid out at termination.
See AZ Statute 23-350(5). The Arizona Attorney General has recognized that employers may lawfully implement a use-it-or-lose-it leave policy requiring employees to use vacation by a set date or lose it, so long as employees have a reasonable opportunity to use the leave.
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