Vacations: What you need to know

Although there is no federal law that entitles private sector employees to paid or unpaid vacation, most employers do give employees a paid vacation, and most employees consider it to be one of their most important benefits. There is a growing body of state law--both statutes and court decisions--that does govern how employers administer vacation time, including whether and how much employees must be paid at termination for accrued but unused vacation.
Employers must know their own state laws in order to develop a comprehensive policy covering eligibility, accrual, carryover, forfeiture, administration, pay upon termination, and integration of vacation policy with other state laws, and to ensure strict compliance and consistency of administration. The policy should be communicated to employees at the time they begin work (in a number of states, this is required).
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Accrual is simply the particular method by which vacation time is accumulated; in most states, employers may set accrual methods up however they wish. Many companies require employees to work a certain number of months before earning any vacation credits.
Following is one method (there are many) of determining accrued vacation during an employee's first year.
No vacation days are earned during the first 2 months of employment. After this 2-month period, 1 day of vacation is earned for each full month worked, up to a maximum of 10 days for that calendar year. More than 50 percent of a month may be counted as 1 month for these purposes. Before the completion of 6 months of service, only accrued vacation days may be taken. On January 1 of the following calendar year, each employee who has then completed 6 months of service will again ...

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Vacations Resources

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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