Vacation Pay

Employers are not required by law to offer employees paid vacations and have wide latitude in their
vacation policies.

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Vacation policies are determined by individual companies, and they may give vacation time off to some employees but not others.  In making the decision about who gets vacation days, they are not allowed to use race, religion or disability in the determination.  A company can require that an employee work a certain length of time before being eligible for vacation pay, and they can also cap the number of days or hours accrued.  An employer can put restrictions on when vacations may be taken, denying time off during a busy season.  Even with the general freedom employers enjoy in establishing their vacation policies, an employee who has unused vacation days when their employment ends, either by termination or by resignation, may have the right under state law to be paid for the unused time off.