Former Bank of America Employees Shortchanged On Unused Vacation Time Pay, Class Action Alleges

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Bank of America faces a proposed class action wherein a former employee claims the institution has reneged on its promise to pay workers for accrued vacation time at the end of their employment.

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The 16-page lawsuit says that the bank’s written policy states that, upon “termination of employment,” including retirement, resignation or discharge, workers will receive compensation for any unused vacation time. Contrary to its own policy, Bank of America, the case alleges, maintains a company-wide practice of failing to pay out accrued vacation time to departing employees as promised, or otherwise issuing payment only if an employee has filed a specific written request with the human resources department.

The suit argues that this practice violates numerous state labor laws, which require employers to promptly issue all compensation owed to an employee, including any unused vacation time accrued pursuant to the company’s policies, at the end of their tenure.

The plaintiff, who from 2017 to 2020 worked as a lending officer at a Bank of America office in California, claims she had accrued more than 100 hours of vacation time when she left her job in May 2020.

According to the case, the plaintiff contacted the human resources department before leaving the company to inquire about compensation for her vacation time. Per the complaint, the representative instructed the woman to request payment from her supervisor, who told her that, “pursuant to company policy, any unused vacation time was forfeited by the employee when he or she left the company.”

By withholding the plaintiff’s accrued vacation pay, Bank of America violated the California Labor Code and therefore owes the woman penalties equal to 30 days’ wages, the filing claims.

The case contends that Bank of America has likely failed to pay vacation time to “thousands or even tens of thousands” of other former employees, costing the individuals millions per year.

The lawsuit looks to represent anyone in the United States who left employment with Bank of America, whether due to resignation, termination or any other reason, and was not promptly paid for any accrued but unused vacation time during the applicable statute of limitations period.

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