Human Resource Blog

Use it or Lose it PTO

At this writing, *use it or lose it* vacation policies are unlawful only in California and perhaps Maryland. (A case is before the Maryland Court system.) In a few other states, the policy is being challenged in court, but at this point it is lawful everywhere except California.

Could you tell me if its OK for an employer to force an employee to use or lose her leave in 2009 while she is travelling overseas and would need to use some in the first 3 weeks of 2010 before she returns from her trip?

Thanks!

Yes, this is entirely legal and even ethical. The employees travel arrangements are really none of the employers concern. The employee can certainly ask if she be allowed to carry over 2009 vacation until the first few weeks of 2010, but there is no law that the employer must grant this request — and we would not recommend that the employer permit it. By doing so, the employer would have to permit other employees to carry over vacation time in the future.

*Use it or lose it* means exactly what it says. If the employee does not use her vacation time before December 31, 2009 she loses it. It is gone forever. Presumably, this employee has vacation time in 2010 that she could use in the first few weeks of the year, if she wanted to.