Vacation Pay

Vacation pay is not required by U.S. law, according to research resources at this writing. In fact, U.S. employers don't have to offer vacation time off even without pay. Vacation pay is strictly voluntary for employers, but many offer it as a benefit to attract and keep employees.

If employers do offer vacation pay, then employees are entitled to it under the terms and conditions in the related policies or employment contracts. If employers allow vacation pay to accrue by policy or contract, in some states, such as those listed below, they must offer the accrued vacation pay when employment ends.

• California
• Illinois
• Iowa
• Louisiana
• Maine
• Massachusetts
• North Carolina
• Oregon
• Rhode Island
• Tennessee

Some employers offer accrued vacation pay even if state law doesn't mandate it. However, even if your state does mandate accrued vacation pay, you might not be entitled to it if you don't follow company policy or the terms of your employment contract when terminating your employment. For example, if you quit and don't submit advanced notice as required, your employer might legitimately deny you accrued vacation pay and other termination benefits.

Because offering vacation pay is voluntary for employers, they may impose other conditions and restrictions too. For example, your employer can likely require you to schedule your vacation in advance or postpone it. But it's wise for employers to apply their vacation policies consistently to all employees. Otherwise, "cheated" employees might be able to sue.

To research vacation pay and other employment legal matters for your state, browse the resources listed in State Labor Law and Employment Law.