After a laid-off employee of Electronic Data Systems Corp. filed a suit to receive his unused paid vacation time pay in 2005, Attorney General Martha Coakley agreed that Electronic Data Systems Corp.'s policy of refusing ex-employees their vacation pay violated the state Wage Act. Friday, the Massachusetts Supreme Judicial Court, the highest court in the state, backed Coakley's interpretation, saying that employers must pay their fired or laid-off workers for any unused paid vacation time they had built up. The ruling said that the policy "wrongly exempted EDS from the Wage Act." EDS has acknowledged the court decision, and announced that it will comply with the ruling.
See "Fired workers entitled to vacation pay", The Boston Globe, June 11, 2009