Vacation Pay

News & Analysis as of

German Statutory Minimum Wage May Include Vacation and Christmas Bonuses

On May 25, 2016, the German Federal Labor Court confirmed a decision of the State Labor Court Berlin-Brandenburg (reference number: 5 AZR 135/16) regarding the statutory minimum wage in Germany. The German Federal Labor...more

Court Grants Summary Judgment for Employer in California Class Action Vacation Pay Case

Most California employers know that California treats vacation pay largely as a vested benefit that cannot ordinarily be “forfeited.” In common parlance, the state prohibits “use it or lose it” policies. To prevent employees...more

EO Update: e-News for Charities & Nonprofits

Some Form 990-N Electronic Filing System (e-Postcard) users may see error messages - The Form 990-N online filing system moved from Urban Institute to IRS.gov in February. While the new system has been successful, a...more

Should Your Employees Get More Sun, Surf, and Sand? A Quick Look at Unlimited Vacation Policies

The news reports that more and more companies are moving to offer unlimited vacation time. On its face, this policy change appears to be a generous offer by employers to boost employee morale and attract top talent, but there...more

New Guidance on “Use It or Lose It” Vacation Policies in Colorado: What Is “Earned” Cannot Be Forfeited

The Colorado Wage Protection Act, which amended the existing Colorado Wage Act, § 8-4-101, et seq., governs payment of wages for work performed in Colorado. The Act became effective on January 1, 2015, and is enforced by the...more

Colorado Vacation Pay Update

Earlier this month, we alerted you that the Colorado Department of Labor was considering an enforcement position with respect to “use it or lose it” vacation policies. The CDOL recently issued a FAQ document about Colorado’s...more

"Use-It-Or-Lose-It" Vacation Policies Declared Permissible in Colorado

The Colorado Department of Labor-Division of Labor has issued much needed guidance confirming that "use-it-or-lose-it" vacation policies are permissible under the Colorado Wage Protection Act provided that the policy is...more

Colorado Division of Labor Issues New Guidance on "Use-It-Or-Lose-It" Vacation Policies, But Questions Remain

The Colorado Department of Labor and Employment's Division of Labor has promulgated new guidance on "use-it-or-lose-it" vacation policies. While the Colorado Division of Labor has taken no enforcement position on...more

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

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

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

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