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Minnesota Vacations: What you need to know

No Minnesota law requires private sector employers to provide employees with vacations, paid or unpaid, but most employers do offer some version of vacation. It is important for employers to remember that if they “promise” paid vacation, they may be legally bound to provide it; that a promise may bind an employer as much as a formal employment contract.
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Employers must pay earned vacation time under the terms of any agreement with employees, such as a collective bargaining agreement or an employee handbook. (MN Stat. Sec. 181.74, subd. 2 defines “wage supplements” as including vacation pay.)
When an employee leaves the job, the question of payment for vacation time will depend on what the employer has established as eligibility requirements for vacation. If the employee has satisfied the eligibility requirements and has accrued vacation, but has not used it, the employee must be paid for the time upon termination. Agreement to pay vacation pay if employees meet a certain eligibility standard in terms of time worked is “not a gratuity but is a form of compensation for services, and when the services are rendered, the right to secure the promised compensation is vested as much as the right to receive wages…” according to the Minnesota Court of Appeals (Brown v. Tonka Corporation, 519 NW2d 474 (1994)).
Minnesota's highest court has determined that vacation benefits are "wholly contractual." Based on the terms of an employee handbook or policy, the court held that employers may lawfully refuse payment of personal time off (PTO) to an employee who was terminated for misconduct (Lee v. Fresenius Medical Care, Inc., 741 NW2d 117 (MN ...

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Minnesota Vacations Resources

TypeTitle
Forms Request for Days Off
Policies Vacation
White Papers Time off May Be the Biggest Benefit

Vacations Products

Solving PTO Problems Webinar Recording
Solving PTO Problems: How to Reduce Unscheduled Absences Without Alienating Employees or Violating the Law"
Perfecting Your PTO Policy Recording
BLR Webinar: "Perfecting Your PTO Policy: How to Curb Abuse, Cut Absenteeism, and Comply with the Law""
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Claim Your Free Copy of Top 100 FLSA Overtime Q&As

We’ve compiled a list of the 100 most commonly asked questions we have received on the federal Fair Labor Standards Act (FLSA) overtime regulations.
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This report, "Top 100 FLSA Q&As", is designed to provide you with an examination of the federal FLSA overtime regulations in Q&A format, including valuable tips for bringing your workplace into compliance in an affordable manner.

At the end of the report, you will find a list of state resources on wage and hour issues. This report includes practical advice on topics such as:
  • FLSA Coverage: How FLSA regulations apply to all employers and any specific exemptions from the overtime requirements
  • Salary Level: Qualifying for exemptions and nonexempt employees
  • Deductions from Pay: Deducting for violations, disciplinary reasons, sick leave, or personal leave


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