Today in Fisher v. PayFlex 829 N.W.2d 703, 285 Neb. 808 (May 3, 2013), the Nebraska Supreme Court in a 4 to 3 decision decided that PTO (“paid time off”) is vacation time. Thus, employers are required to pay accrued but unused PTO time upon termination of an employee. This opinion resolves a dispute among district courts as to whether PTO needed to be paid upon termination. Many people believed that the legislature’s amendments to the Wage Payment and Collection Act in 2007 had excluded PTO from payment upon termination. The majority held that it had not. Employers with separate “sick” and “vacation” time off policies will still not be required to pay sick time upon termination.
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