Vacation Pay

News & Analysis as of

Upcoming Changes to Colorado Law on "Use It or Lose It" Vacation Policies

Colorado employers are advised to review their vacation policies in light of a recent announcement by the Colorado Division of Labor (the "Division") regarding its new enforcement position on vacation pay. Although a formal...more

Payment of Accrued But Unused Vacation Pay

The Connecticut rules for payment of accrued but unused vacation pay when employment terminates are fairly simple, but a brief refresher may be helpful to employers. Connecticut General Statutes § 31-71f requires...more

The OFCCP’s War Path: Federal Contractors Take Note

Subject to very limited exceptions, employees of federal contractors must be permitted to discuss their compensation without retaliation or fear of intimidation. Federal contractors will be required to provide paid sick...more

Colorado Employers Face Significant Change In Vacation Pay Law

“Use-it-or-lose-it” vacation pay policies are no longer permitted under Colorado wage and hour laws, according the Colorado Department of Labor Division of Employment’s current enforcement policy....more

Australia: Federal Court Clarifies Rate Employers Must Pay for Untaken Annual Leave on Termination

In a ruling focused on statutory interpretation, a full federal court bench recently confirmed that employers must pay out employees’ accrued but untaken annual leave upon termination at the rate the employees would have...more

Weather Events Create Difficult HR Issues

In the last month, Houston employers have faced catastrophic rains, flooding, and now a tropical storm. We thought it would be a good time to dust off the Firm’s HR Guide for Hurricane and Disaster Preparation, which can be...more

Former Employee Not Entitled to Compensation for Unused Vacation Time

Many employers offer paid vacation time as a benefit to their employees. There is no Pennsylvania law requiring the payout of unused paid leave time, such as vacation; instead, this is governed by the employer’s policy or...more

Top Three Risks Associated With Implementation of an "Unlimited" Vacation Policy and How to Mitigate Them

“Unlimited” vacation (or otherwise known as nonaccrual of vacation) policies can provide a benefit with appeal to both employers and employees. For employers, providing an “unlimited” vacation benefit can alleviate some of...more

Massachusetts Attorney General Creates a "Safe Harbor" From the Requirements of the Massachusetts Sick Leave Law

The Massachusetts Attorney General recently issued a supplemental regulation to the state's new sick leave law that aims to provide a "safe harbor" to Massachusetts employers that had qualifying paid time off ("PTO") policies...more

California District Court Rejects Yet Another Class Settlement

In yet another decision rejecting a settlement of an employment class action, the Northern District of California refused to approve a settlement of a wage and hour suit due to numerous problems with the resolution reached...more

Get Your Vacation Policy Right, and Then Relax!

Enjoying vacation time this summer? We all need a vacation at some point, and thankfully many employers provide for paid vacation leave. But as with many wage and hour issues, employers get themselves into legal trouble by...more

Employers May Deduct from Vacation Pay for Exempt Employee's Partial Day Absences of Less than Four Hours

An employee’s exempt status under both federal and California law is dependent on the employee’s duties falling within one of the exemptions (administrative, professional, executive) and the employee being paid on a “salary...more

Class Certification Granted to Former MF Global Employees Seeking Vacation Pay

Judge Glenn of the U.S. Bankruptcy Court for the Southern District of New York recently granted class claim certification to a group of former MF Global employees seeking payment on account of unpaid accrued vacation time. ...more

Court Endorses PTO Use for Exempt Employee Partial-Day Absences

Employers often confuse the strict rules limiting the docking of exempt employees’ salary with different rules relating to partial-day deductions under vacation or “paid time off” (PTO) policies. A California appellate court...more

Quirky Question #234, Selling Accrued Vacation

Question: Our company allows employees to sell up to 40 hours of their accrued PTO (accrued vacation) each year. If an employee elects to sell the accrued PTO, we pay it out in a lump sum at the end of the year. Does...more

Hearing date set for important holiday pay calculation cases

Kate Hodgkiss, Partner in our Edinburgh office, comments: The EAT has now listed the cases of Bear Scotland Ltd v Fulton and Neal v Freightliner Ltd to be heard on 30 and 31 July 2014. The EAT’s findings will determine...more

Employment Law Bulletin: Auditing your practices to avoid wage-and-hour claims in Florida

"Florida is a hotbed of wage-and-hour litigation,” is repeatedly quoted in one report after another over the past year, and this trend is expected to continue throughout 2014. Here is a quick roadmap of compliance questions...more

The HR Grinch: The Pitfalls Of Businesses That Open For The Holidays

There was a lot of buzz in the weeks leading up to Thanksgiving—buzz which will continue through the Christmas holiday—about retailers and other businesses that not only opened on “Black Friday,” but also on Thanksgiving Day...more

Payments Upon Termination Of Employment: Is Anyone Still Confused?

Most California employers know that an employee who is fired must be paid all of his or her wages, including accrued but unused vacation, immediately at the time of termination. Labor Code sections 201 and 227.3. However, I...more

CA Supreme Court Holds That Employees Are Bound By Arbitration Agreements Waiving Right To A Labor Comm’r Hearing

Frank Moreno agreed, as a condition of his employment with Sonic-Calabasas A, Inc., to arbitrate all of this employment disputes with his employer. After terminating his employment with Sonic, Moreno filed an administrative...more

Employment Law -- Oct 15, 2013

“Use It or Lose It” Policy Results in Multimillion-Dollar Verdict - Why it matters: Although this decision is unpublished, it provides a lesson on the potentially expensive ramifications of maintaining an illegal...more

Update on Holiday Pay and Sickness: “Right to Carry Forward” Limited to Four Weeks Per Year

The Employment Appeal Tribunal (EAT) has handed down an important decision for UK employers, limiting the right of workers to carry forward holiday entitlement accrued during a period of long-term sickness absence. ...more

Gratuitous Payments Cannot Be Re-Cast as Accrued Vacation Pay Required by Massachusetts Wage Act

A favorite saying of my mentor and colleague in the Labor and Employment Group here at Burns & Levinson is “no good deed goes unpunished.” Over my years of practice, I have found that this phrase oft comes to mind when an...more

Recent Decisions Illustrate Strict Interpretation of Massachusetts Wage Act

Two recent decisions from Massachusetts courts again highlight the strict requirements of the Massachusetts Wage Act, which details how and when employees must be paid. The cases address the treatment of sales commissions and...more

HR Professionals: The Key To Smooth Corporate Acquisitions

Although human resources professionals are not always recognized for their efforts during a corporate acquisition, the work which they do behind the scenes can often make the difference between an acquisition succeeding or...more

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