CHARLESTON — The West Virginia Supreme Court of Appeals reversed a decision by a circuit court to deny a claim for payment of accrued paid time off after an employee resigned.
Chief Justice John Hutchison authored the majority opinion. Justice Tim Armstead concurred in part and dissented in part. Justice Alan Moats did not participate in the decision.
Amie Miller appealed the Sept. 2, 2020, trial order of Wood County Circuit Court that granted judgment in favor of St. Joseph Recovery Center following a bench trial and dismissed her civil action.
Miller claimed in her complaint that SJRC violated the terms of her Employee Agreement, the Employee Handbook, and the West Virginia Wage Payment and Collection Act by failing to provide her severance pay and compensation for accrued paid time off upon her resignation.
"In its trial order, the circuit court concluded that Ms. Miller’s resignation was not for a 'good reason,' and therefore, Ms. Miller was not entitled to a severance package," the April 26 majority opinion states. "Ms. Miller appeals the trial order and other pre-trial summary judgment rulings of the circuit court including the denial of her claim for payment of accrued paid time off pursuant to the Employee Handbook."
The Supreme Court ruled that upon consideration of the terms contained in the Employee Agreement and Employee Handbook, they find that the circuit court erred. and it reversed the rulings of the circuit court and remanded for further proceedings.
Miller was a nurse practitioner at SJRC in Parkersburg and in her employment agreement, it stated that if she resigned because SJRC had "materially breached its contract agreement" then she would receive a severance package from the company.
Miller contends that she tendered her resignation on June 18, 2019. She claims after resigning, she initiated a lawsuit against SJRC and two other related companies alleging they failed to pay her wages in a timely manner on four occasions and had breached the employment agreement.
Miller claims this triggered the "Good Reason" for resignation provision in the contract. She argued SJRC failed to pay her accrued time off and the severance package.
The Supreme Court found that Miller should receive the accrued time off, but not the severance package she demanded.
"Because the Employee Handbook specifically provides for the payment of 'certain accrued, unused paid time off,' and because Ms. Miller appears to have given the proper and timely notice to SJRC of her resignation, we conclude that Ms. Miller should be entitled to a determination of her entitlement to receive her unused PTO as part of her severance package," Hutchison wrote.
West Virginia Supreme Court of Appeals case number: 20-0755