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No. Unless the employer's policy or its labor agreement specifically requires compensation of unused "vacation pay or other compensatory time" to an employee upon his or her termination of employment, Tennessee Code Annotated § 50-2-103(a)(3) does not require that an employee's final wages include such compensation.
Tennessee Sick Leave: What you need to knowThere is no Tennessee law requiring private employers to provide employees sick leave, paid or unpaid, although many employers do grant it as an important employee benefit.
Tennessee law does not require employers to provide vacation, sick leave, or paid time off. However, employers who do provide vacation or PTO must include any accrued but unused paid time off in an employee's final wages paid out on termination if required to do so by company policy or a labor agreement.
FMLA leave is unpaid, but employees may be allowed (or required) to use their accrued paid leave during FMLA leave. When an employee's FMLA leave ends, the employee is entitled to be reinstated to the same or an equivalent position, with a few exceptions.
There is no Tennessee law requiring private employers to provide employees sick leave, paid or unpaid, although many employers do grant it as an important employee benefit. It is important to remember, however, that if sick leave is promised, an employer may create a legal obligation to grant it.
Employee RightsEmployers may legally hire, fire, suspend or discipline any employee at any time and for any reason - good or bad - or for no reason at all; however, an employer may not discriminate against any employee on the basis of the employee's race, sex, age, religion, color, national origin, or disability.
Paid Family Leave provides an employee with up to 30 work days (typically 6 weeks) of leave to take care of a spouse, son, daughter, or parent who has a serious health condition.
According to Tennessee law, any employee who has been employed as a full-time employee for at least 12 consecutive months may take up to four months of leave for pregnancy, childbirth, nursing of an infant, or adoption of a child (defined as beginning at the time employee takes custody of the child).
An employer may lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment.