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Rhode Island is an employment-at-will state. Therefore, an employer may generally terminate an employment relationship at any time and for any reason. However, a federal or state law, collective bargaining agreement, or individual employment contract may place further limitations on an otherwise at-will relationship.
Montana is the only state in the U.S. that is completely not at-will. All other states in the U.S. have some version of at-will employment. In Montana, employers can practice at-will employment during a probationary period only. Other states do have exceptions to at-will employment.
If an employer offers "vested vacation pay," employers must pay departing employees the vested, unused vacation pay, whether the employee is terminated or leaves voluntarily. Vested vacation pay is treated as wages.
Vacation Leave According to Rhode Island law, an employer must pay an employee who has completed at least one (1) year of service, upon separation from employment, for any vacation pay accrued in accordance with company policy or contract on the next regular payday for the employee.
All 50 states in the U.S. and Washington, D.C. are at-will employment states. However, some states have exceptions. One limitation is the public policy exception. This means that an employer can't fire an employee if it violates the state's public policy doctrine or a state or federal statute.
The one difference between U.S. laws and Rhode Island (RI) wage and hour laws is that Rhode Island also pays overtime wages to those who work more than seven days in a row. The federal government does not have this provision.
Rhode Island, like many other states, is an employment at will state. This means that unless an employee has an employment contract or is employed under a collective bargaining agreement, employment may be terminated by the employer for any reason or no reason at all.
Payout of vacation at termination. Rhode Island law explicitly states that when an employer terminates an employee and the employee has completed at least 1 year of service, any vacation pay accrued according to policy or any other agreement is considered wages and must be paid by the next regular payday.
Most states, including Rhode Island and Massachusetts, follow the so-called employment at will doctrine. This means that in the absence of a contract (either through a union or otherwise), an employee may be fired for any reason or no reason at all.