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Aug30

vacation pay

can an employer have a policy stating that an employee cannot take any earned PTO until they have worked an entire year? Second, can the employer force an employee to forfeit any earned PTO if not used by their anniversary date?

Employers are not required to provide paid or unpaid vacation, and those that do choose to provide this benefit may establish their own policies regarding how and when time is earned, when it may be used, eligibility requirements, etc. It is permitted to offer different vacation plans to different groups of employees, such as exempt and nonexempt employees. It is also acceptable for an employer to require a minimum length of employment or number of hours worked per week in order to be eligible for vacation.

However, the answer to your second question will depend on the state you are in. Although no employer is required to provide any vacation time, once they do, employers in some states are regulated regarding such issues as whether or not they must pay out earned, unused time at vacation upon termination and/or whether they can institute a “use-it-or-lose-it” policy, whereby vacation must be used by a certain date. For specifics on your state’s requirements, please re-post indicating your state.

This entry was posted on Saturday, August 30th, 2014 at 12:23 pm and is filed under
Benefits, Human Resources Management, Labor Laws.
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