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Chrin v. Cambridge Hydrodynamics, Inc.

A-3610-02T5 (N.J. Super. App. Div. 2003) (Unpublished)

EMPLOYER-EMPLOYEE—Absent a contract or other promise, an employee is not entitled to be compensated for unused vacation time upon termination.

An employee “had no written employment contract, no employee handbook, and presented no document which stated that he would receive compensation for unused vacation time upon termination of his employment.” Further, no such promise was made. Nonetheless, he contended that he was entitled to unused vacation time for the four years for which he worked for his employer. The company’s president “testified that the company had a ‘use it or lose it’ policy on vacation time and no other employee had ever been entitled to roll unused vacation time from year to year and receive it upon termination.” Consequently, the Court found that the unused vacation pay did not constitute wages under New Jersey statutes, and “there [was] no legal support for [the employee’s] position that, in the absence of a signed employment contract or other promise by his employer, compensation for unused vacation time constitutes wages, which must be paid by his employer upon his termination.”

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