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.
Though there 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 unused
vacation.
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.
