On June 13, Chittenden Superior Court Judge Sam Hoar issued a ruling that Koffee Kup Bakery and Vermont Bread Company needed to pay former employees for the paid time off they had at the time of the layoff.
Unemployment insurance requires you to report any vacation pay you receive from your former employer when it is paid out. You should still file your claims, but because you report vacation pay, you will not receive a payment for as long as your vacation pay offsets your benefit amount.
Review the following steps to know what to do if you receive a payment for the paid time off you had at the time of the layoff.
- Step 1: If you receive vacation pay, you will need to report that you received vacation pay on your weekly claim for the benefit week you receive it by selecting “yes” to the question about vacation pay when you file your weekly claim.
- If you receive your payout during the week of July 18 – 24, you will report it on your weekly claim that you file during the week of July 25 – July 31.
- If you receive your payout during the week of July 25 – July 31, you will report it on your weekly claim you file during the week of August 1 – 7.
- Step 2: Continue to file your weekly claims as you normally would. Please remember, you will not receive weekly unemployment payments for as long as the vacation pay is offsetting your benefit amount.
- Example, if you normally worked 40 hours per week and the employer paid you 80 hours of vacation pay, this vacation pay would allocate into two weeks of unemployment claims. Once this vacation pay has been allocated, you will be eligible to continue to receive full or partial benefits.
- It is extremely important that you continue to file your claims even while your vacation pay is being offset, the system will only offset vacation pay for weeks you actually file.
- Step 3: You will continue to receive weekly payment after your vacation pay has been offset.