Employment Laws on Vacations
The United States does not have any laws that require employers to offer unpaid or paid vacation time to employees. However, there are several federal and state laws that protect employees from unfair treatment by employers who have an established vacation policy. Many companies offer full- or part-time employees the option to take vacation time each year; some companies offer a number of paid vacation days, while others do not pay employees while they are on vacation.
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Company Vacation Policies
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Even though by law companies are not required to offer their employees vacation time, they do so to keep up with the competition of other companies. Vacation time is typically at the top of the benefits list for new employees. All employees should be aware that once a company policy is established, the company must comply under federal and state laws. Company vacation polices are usually explained in an employee handbook or in a job offer letter. Handbooks also can serve as evidence by both employers and employees to prove an unfair use of vacation time or unfair treatment by an employer.
Business Owners
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Business owners will need to review their state's labor laws in order to determine what vacation time is suitable for employees. Often, the appropriate vacation time is determined by part-time or full-time employment status, as well as experience; companies often give employees who have been with the company for several years more paid time off than new employees. Business owners will need to evaluate who is eligible for the paid vacation and how part-time employee vacation time is pro-rated. Once all of these objectives are understood, vacation policies can be revised or determined. How the vacation time is accrued and accumulated will also have to be determined, and business owners can once again consult the state laws for help. Some companies give all the time to employees at the beginning of the year; others allow employees to accrue the vacation time throughout the year.
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Protective Leave
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The government has a protective leave law that allows employees to legally leave work under certain conditions. Common types of leave that are protected by law include voting, family medical situations covered under the Family Medical Leave Act (FMLA), military leave, maternity leave and jury duty. Both employees and employers should be fully aware of federal and state laws regarding these types of leaves. Paid time to vote is required in 32 states, and employers in these states who do not comply face fines and even jail time. Military leave is covered under federal law and applies to all employees with the exception of temporary employees. Jury duty leave is enforced by both federal and state laws. The Family and Medical leave Act requires employers with more than 50 employees to allow up to 12 workweeks of unpaid leave within a one-year period for medical situations. Many states enforce this same principle to employers with less than 50 employees.
Unused Vacation Time
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In various states, employers are legally required to pay unused vacation time to employees at the time of termination. Any deduction of vacation pay without the employee's consent is not allowed, and employees can sue employers in civil court. Employers are prohibited to discriminate or otherwise try to persuade employees to use any remaining unpaid wages.
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References
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