Are Use It Or Lose It Vacation Policies Legal
In some states, it is illegal for employers to impose “use it or lose it” policies, by which employees forfeit any accrued vacation that they haven’t used by a certain time .
In these states, vacation time is considered a form of earned wages, which must be cashed out when the employee quits or is fired .
A policy that takes vacation time away is therefore seen as illegal wage theft. Although the difference may seem fairly technical, these states usually allow employers to place a cap on vacation accrual, which stops the employee from accruing more vacation timerather than taking away vacation time that has already accrued.
Some states specify what ratio is acceptable, while others simply allow a “reasonable” cap. For example, a cap that is twice the annual accrual would likely be considered reasonable. To find out your state’s rules, contact your state labor department.
What If My Employer Denies A Time Off Request
Some employees may feel tempted to use sick days for reasons other than addressing injuries and illnesses, but this is unwise and may even lead to disciplinary action from the employer. Employees who decide to use discretionary time off programs should strive to do so in accordance with company policies. An employer typically cannot deny a sick day request if the employee has a legitimate medical issue.
Ultimately, an employer should never interfere with an employees need for medical treatment or a legitimate time off request under the provisions of the FMLA or CFRA. In doing so the employer could face fines or other penalties. However, an employer has the right to deny a vacation or personal day off request, but they must usually provide a reasonable explanation for such a denial. If you recently encountered problems while trying to request time off from work, contact a to determine if the refusal was legal.
Unpaid Time Off For Exempt Employees
Before you write your policy, you also need to establish if your employees are exempt or non-exempt.
Asking the question of whether unpaid time off for exempt employees is going to be key.
Under the FLSA, an employee is considered exempt if they are paid a salary and receive a minimum of $455 per week. An employee is also considered exempt if they perform executive, administrative, or professional duties.
Whilst exempt employees receive a full salary for any week in which they work regardless of the hours or days worked, non-exempt employees receive an hourly wage so they only get paid when they work. This means that any time off should, theoretically, be paid for exempt employees.
If time off is not paid, a company runs the risk of contravening paid time off laws such as the FLSA. Often, a company will insist that exempt employees used accrued time and vacation days to get around this problem. The Department of Labor favors this option.
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Why Would My Employer Deny My Vacation Request
There are a number of reasons why an employer might deny a vacation request. In some cases, it may be because the company is short-staffed and can’t afford to have another employee out of the office. In other cases, it may be because the request is for an especially busy time of year and the employer wants to make sure that all hands are on deck.
Whatever the reason, it’s important to remember that employers are typically under no obligation to approve vacation requests. If your request is denied, try to be understanding and flexible. See if there’s another time that would work better for both you and your boss.
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Can My Boss Deny My Time Off Request
Nick Ferraro | July 6, 2021 | Employment Law
Has your employer denied your request for time off? Are you wondering if that is legal in California? The answer is possibly.
California wage and hour laws do not force employers to give employees paid vacation time or paid time off . However, if your employer provides PTO, there are rules your employer must follow. Also, some laws require employers to allow employees unpaid time off in specific situations.
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Ask For Time Off During Slower Periods At Work
Requesting time off during the busiest periods of the year means putting your manager in a tough spot. Your boss might want to give you that time off, but if doing so puts the business at risk, he or she can’t afford to do it. So don’t set yourself up for disappointment and put your boss in a position where he or she needs to make you unhappy. Instead, plan your time away from the office during calmer periods. For example, if work tends to slow down during the summer, ask for some vacation time then. Similarly, avoid asking for time off during the winter holidays, when there’s a good chance the majority of your colleagues are clamoring for it as well.
Can Employers Enforce Pto Blackout Dates
Employers sometimes expressly limit PTO requests for specific periods. During these times, often called blackout periods, employers do not allow any employees to take time off. Blackout dates are common around the holidays because many businesses see large increases in demand and need to have all their staff available. Blackout dates are generally allowable by law. However, if you have a religious reason for why you cannot work, a limited religious accommodation may still be possible.
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Can An Employer Deny A Vacation Request
Vacation time can be a tug of war between employers and employees. Workers are entitled to request time off. But this can put employers in a tough position especially if the request comes at an inconvenient time. When its the end of a quarter and the rest of the team is putting in the effort Rocky Balboa-style, what do you do when your lead supervisor suddenly requests a week off? Can an employer even deny a vacation request?
Weve listed the answers to our most asked questions regarding denying a vacation request, including what an employers legal rights are when it comes to denying vacation and PTO denial best practices.
Find A Skilled Employment Law Attorney
The attorneys at Clark Employment Law, APC, can review your situation and identify whether your employers actions are legal. If they are, we may be able to help you secure funding from state programs. If they are acting illegally, we can help you take legal action to get what you deserve. For more information, contact us.
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How To Say No To Employee Requests
Do not simply approach the subject with an abrupt no. You want to show empathy. You want to exhibit a willingness to listen to the employees individual circumstances. Ideally, you want to have this conversation in person.
A series of back-and-forth emails, for example, may only exacerbate the issue as sometimes we can misinterpret an email. You want to be clear in how you communicate and explain why the request cant be met. Ultimately, if you still do have to deny the vacation request, hopefully, your openness and forthrightness will have helped to alleviate some of the tension.
Dont Discount A Forthcoming Emotional Response
When you do tell an employee they cannot have the requested time off, there could be some fallout in terms of a sometimes-ardent emotional response. After all, the employee may have already made the vacation plans, including booking flights and reserving hotels, assuming youd say yes.
When you respond with a no, this could cause that individual to raise their voice, grow frustrated and perhaps even cry. As the employer, you need to be prepared for this type of reaction so that can help diffuse the situation.
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What To Expect From Your Employees When You Deny Pto
Denying vacation requests will undoubtedly hurt morale, especially if it happens frequently, and low morale leads to higher rates of turnover. If you find you are regularly denying requests when employees have a vacation planned, we recommend reaching out to an employment law attorney for additional guidance.
When Can An Employer Deny Time Off
If a company states in your employment contract that it will give you vacation days, it is required to give you the days promised. However, your employer does have the right to control when and how you take your vacation days. California law allows employers to outline specific days or weeks that employees cannot take a vacation. If you request vacation days during a period that the employer has labeled off-limits, he or she is legally allowed to deny your request.
California employers can also create rules about how employees take vacation time. For example, your employer may require you to submit a request for vacation time two weeks prior to the vacation. If you do not comply with the rule, your employer can deny your request. Employers can also limit the number of people who can take vacation days at one time, or they could even . If you request vacation during a time when many other people are already taking off, your employer has the right to deny you your vacation time until more people return to the office.
California employers can legally create rules and limits about vacation time, giving them the right to deny your request in certain situations. However, state law prohibits any employer from denying vacation requests because of race, gender, religion, or other reasons that are considered . If you believe you have been denied vacation time because of a discriminatory reason in California, contact the at Mathew & George for a FREE consultation.
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When Your Employee Just Takes Off Anyway
Not often, but in some instances, it could happen that an irate employee and then deal with the consequences later. What then? How do you handle this situation?
- Unexcused absences should be addressed in accordance with company policy.
- Even though you may have had a heart to heart with this employee prior to their taking unexcused time off, you still want to ensure their case is treated just as any other employee would be. If action is warranted, be sure to take such action as outlined in the company policy.
- Get an HR expert involved. If your organization does not have an in-house HR team, then working with a PEO comprised of experienced HR professionals who are knowledgeable in regard to these types of employee matters can make a big difference.
Provide Evidence Youll Have Your Work Done Or Covered
When you speak to your boss, make sure that your work is caught upor that you have a plan in place to show your daily responsibilities and emergencies will be taken care of by team members in your absence. Alert your supervisor to the team coverage, Krause says.
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Formulate And Follow A Clear Policy
As long as policies are not discriminatory in nature, employers are free to restrict the number of holidays permissible during a vacation. Employers can formulate and implement their own vacation time policies. These policies can elaborate on the process by which requests will get approved and also on how many days can be taken off at a time. However, restrictions of holidays need to be reasonable and fair. These policies should be strictly followed consistently by employees at all levels. When such a policy exists, it is important to follow it thoroughly. If the employer follows the clearly stated policy, then the employees get a better understanding of why their leave request or a vacation leave was not allowed.
Can An Employer Terminate Your Employment For Taking Time Off
Its important to remember that no one can force you to work. Labor laws simply state that your employer cant fire you if you take time off for certain, covered reasons. Thus, if the employer denies an unpaid time off request for a legitimate reason, you can decide to take time off anyway.
If you take unapproved time off, the employer does have the right to terminate your employment. Employers are only prohibited from terminating your employment if you take 12 or fewer weeks of unpaid leave in any given year for a protected reason. Workplace policy may not override federal or state law.
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Restrictions On When An Employee Can Take Vacation Time
Employers are permitted to place reasonable restrictions on the use of PTO and vacation time. California employment laws allow employers to manage their responsibilities regarding vacation pay. Employers can do this by telling employees when they can take a vacation and the amount of vacation that can be taken at any specific time.
For example, many companies in the hospitality industry do not allow any PTO or vacation time during holidays, special events, or the busy tourist season. This policy allows employers to manage their workforce more efficiently and ensure the business has enough employees to operate during peak times.
It is important to remember that earned vacation time is considered wages. Therefore, vacation time cannot be forfeited after it is earned, even if the employer fires the employee or the worker quits. However, employers are permitted to place vacation caps on accrued time off so that vacation time never exceeds a specific number of hours.
Employers may also require employees to follow a specific protocol for requesting time off. For example, an employer may require that the employee submit the request in writing using a company form to his supervisor or human resources at least 14 days in advance. The employer must have a clear policy that applies to all workers.
If an employee quits or is fired, all accrued vacation and PTO must be paid at the employees final pay rate and included with the employees final paycheck.
What Is Unpaid Time Off
Employers may pay employees for time off taken as part of their paid time off policy. Many organizations will offer accrued or lump sum paid leave for vacation, sickness, or medical leave. If an employee is absent for any other reason, it is often up to the company to decide whether the time will be paid or not.
Employers may offer unpaid time off in addition to paid time off. There are three main avenues through which employees receive unpaid time off:
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Can I Use Pto During My Two
Employees can often take their unused PTO after they have given their two-week notice. However, employers can still deny those requests, just as they could if an employee was not in their two-week notice period. Employers may also have policies that allow them to revoke previously approved vacation requests, and may be able to do so if a vacation was approved before a notice was provided.
Some employers’ policies require them to pay you for any unused PTO after you quit. If your employer has this type of policy, you might consider getting that payout even if you put in a PTO request and it is denied.
Employers Can Not Deny Employees Their Earned Vacation
In what seems like an obvious decision, the Supreme Judicial Court struck down EDSs policy to deny employees a payout of earned vacation upon termination.
The decision, Electronic Data Systems Corporation v. Attorney General, confirmed that when an employee earns vacation and is fired, the employer must pay out that employee for all vacation earned up until the date of termination.
EDSs written vacation policy stated that vacation time is not earned and does not accrue. If you leave EDS, whether voluntarily or involuntarily, you will not be paid the unused vacation time. An employee named Francis Tessicini had used only 1 of his 5 vacation days at the time EDS terminated him. When EDS refused to pay out Mr. Tessicini for his remaining 4 days of unused vacation time, he complained. The Attorney General agreed.
The Massachusetts Wage Act provides that any employee discharged from such employment shall be paid in full on the day of his discharge . The word wages shall include any holiday or vacation payments due an employee under an oral or written agreement . No person shall by a special contract with an employee or by any other means exempt himself from the section.
Philip Gordon submitted an amicus brief to the Supreme Judicial Court, supporting the Attorney Generals view, on behalf of the National Employment Lawyers Association, Massachusetts Chapter..
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Make A Good Argument:
When you make a good argument, your boss will be more likely to approve it. Try to highlight the benefits of you taking a vacation.
For example, you can talk about how the break will help you recharge and be more productive when you come back.
You might also mention that other employees are taking vacations without any consequences.
Stay On Top Of Your Work
I think that the best time to take a vacation from work is after 2 or 3 months of good meaningful work that advances your goals.
So staying on top of your work a week or two before the vacation is important because it will give you that sense that you are in control of things.
This way you will be able to unwind during your vacation and get right into it once you come back.
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