Compensation question-HR types please read

As some of you may know, I’m going to be posted to Sri Lanka in March. My wife’s employer yesterday informed her that they’re going to reorganize the office, and as of the end of the month, she no longer has a job (ironically, at a labor rights NGO).

They’ve offered her severance, are going to keep her on the health insurance until we leave the country, and said that they’ll send her some contract work, but they’re only going to pay her for half of her annual leave.

I was under the very strong perception that employers in the US MUST pay you for ALL unused annual leave. Has anyone had any experience with this? (Her office is a 501©3 nonprofit in the District of Columbia, BTW).

I think this is a state by state matter. I know that in Colorado, where I used to live, vacation days were considered something earned and as such, must be compensated for if the employee leaves for any reason.

Check your state laws.

I am assuming annual leave is same as vacation days.

I think the issue may be whether her unused annual leave has been earned or not. For instance, if she gets 2 weeks of vacation per year and she leaves in the middle of the year, she would only get compensated for 1 week. Vacation is usually earned as x.x day(s) per “full” month(s) of employement.
Jim