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December 30, 2011
Healthcare Provider Agrees to Pay $64,000 for Vacation Pay

California-based healthcare provider Sun Healthcare Group, Inc. and 21 affiliates has agreed to pay more than $64,000 for failing to pay vacation wages to departing employees in Massachusetts, Attorney General (AG) Martha Coakley recently announced. The damages include more than $40,000 in unpaid vacation wages and a $20,000 civil penalty to the Commonwealth.

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In October 2010, the Fair Labor Division of the AG’s Office began investigating Sun Healthcare following a complaint from a former employee. Investigators found that between January 2009 and January 2011, 348 former Sun Healthcare employees were not paid earned vacation wages upon termination or separation from their jobs. Massachusetts law requires that employers who provide paid vacation treat vacation pay like any other wages. Upon separation or termination, employees must be compensated for vacation time earned “under an oral or written agreement,” AG Coakley noted.

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