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Dorsey & Whitney – Montana Supreme Court Decision on Sick Leave Payout Policies

SUMMARY. Employees at the Kalispell Regional Medical Center, upon being hired, signed a probationary employment contract that read, "Upon expiration of this Probationary Employment Contract, if the Employer and Employee elect to continue the employment relationship, the Employee shall attain regular employee status, subject to the policies and regulations of the Employer, as they may exist from time to time." KRMC’s policy and procedure manual contained the statement, "benefits may change from time to time…" and that "policies and benefits…may be modified, added to, or discontinued from time to time." At the time plaintiffs were hired the sick leave policy allowed employees to bank unused sick leave into a Continuous Illness Bank, for use during long term illness. KRMC did not pay out the unused Bank upon termination except to employees with more than 25 years of service.

By: Gabrielle Wirth
Partner http://www.dorsey.com/wirth_gabrielle/ and Steve Bell
Partner http://www.dorsey.com/bell_steve/

Read the full article here: https://clients.dorsey.com/rs/vm.ashx?ct=24F76A1BD6E60AEDC1D089A5D52B931ADFBE7BB3D38714DD4CF371647BF8D90DDD78037

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