There is no federal law that
entitles private sector employees to paid or unpaid vacation; nonetheless, most employers do give
employees time off for vacation, and employees generally consider
this to be one of their most important benefits.
is no federal vacation law, there is a steadily
growing body of state law—an amalgam of statutes and court decisions—that
controls how employers administer vacation time, including whether
and how much employees must be paid at termination for accrued but
Employers must know the laws in their state(s) of operation in order to
develop a comprehensive, compliant 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.