Deferrals cannot be withheld from compensation paid to employees after termination of employment unless the compensation is paid within 2 ½ months after the termination of employment and the compensation represents:
- Payments that the employee would have received if there had been no termination of employment (e.g., payment for hours actually worked prior to termination of employment or payment of commissions); OR
- Payment for accrued sick or vacation pay. (If the employee was entitled to take the leave if employment had continued)