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Hawaii
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In Hawaii, employers are not required to provide employees with vacation benefits, either
paid or unpaid. If an employer chooses to provide such benefits, it must comply with the
terms of its established policy or employment contract. An employer must provide
employees written notice of the terms of its vacation policy. Haw. Rev. Stat. § 388-7.
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See Casumpang
v. ILWU, Local 142, 108 Haw. 411, 121 P.3d 391 (Haw. 2005); Lim v. Motor Supply,
LTD, 45 Haw. 111, 364 P.2d 38 (1961).
An employer may lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
are terminated. See Casumpang v. ILWU, Local 142, 108 Haw. 411, 121 P.3d 391 (Haw.
2005); Lim v. Motor Supply, LTD, 45 Haw. 111, 364 P.2d 38 (1961).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. See Casumpang v. ILWU, Local 142, 108
Haw. 411, 121 P.3d 391 (Haw. 2005); Lim v. Motor Supply, LTD, 45 Haw. 111, 364 P.2d
38 (1961).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Casumpang v. ILWU, Local 142, 108
Haw. 411, 121 P.3d 391 (Haw. 2005); Lim v. Motor Supply, LTD, 45 Haw. 111, 364 P.2d
38 (1961).
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. See Casumpang v. ILWU, Local 142, 108 Haw. 411, 121 P.3d 391 (Haw. 2005);
Lim v. Motor Supply, LTD, 45 Haw. 111, 364 P.2d 38 (1961).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Casumpang v. ILWU, Local 142, 108 Haw. 411, 121 P.3d 391 (Haw. 2005); Lim v.
Motor Supply, LTD, 45 Haw. 111, 364 P.2d 38 (1961).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. See Casumpang v. ILWU, Local 142, 108 Haw. 411, 121 P.
3d 391 (Haw. 2005); Lim v. Motor Supply, LTD, 45 Haw. 111, 364 P.2d 38 (1961).
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Idaho
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In Idaho, employers are not required to provide employees with vacation benefits, either
paid or unpaid. ID Dept. of Labor: Labor Law Guide. If an employer chooses to provide
such benefits, it must comply with the terms of its established policy or employment
contract. ID Dept. of Labor: Labor Law Guide.
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Ferguson v. City of Orofino, 131
Idaho 190, 953 P.2d 630 (1998); Jackson v. Minidoka Irrigation Dist., 98 Idaho 330, 563
P.2d 54 (1977).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Ferguson v. City of Orofino, 131 Idaho 190, 953 P.2d 630 (1998); Jackson v.
Minidoka Irrigation Dist.. 98 Idaho 330, 563 P.2d 54 (1977).
Neither Idaho’s Legislature nor its courts have given any significant guidance regarding
other potential vacation policy issues. They are silent regarding whether an employer
may:
- establish a policy or enter into a contract denying employees payment for
accrued vacation leave upon separation from employment,
- deny payment for accrued vacation to an employee upon separation from
employment if its policy or contract is silent on the matter,
- require an employee to comply with specific requirements to qualify for payment
of vacation leave upon separation from employment, such as giving two weeks
notice or being employed as of a specific date of the year,
- implement a “use-it-or-lose-it” policy requiring employees to use their leave by a
set date or lose it.
Although Idaho’s authorities are silent regarding many vacation policy issues, based on
the contractual emphasis Idaho courts have placed on vacation policies, an employer is
likely free to implement the vacation policy of its choosing, including policies that deny or
limit payment of accrued vacation upon separation from employment. See ID Dept. of
Labor: Labor Law Guide.; Ferguson v. City of Orofino, 131 Idaho 190, 953 P.2d 630
(1998); Jackson v. Minidoka Irrigation Dist., 98 Idaho 330, 563 P.2d 54 (1977).
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Illinois
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In Illinois, an employer is not required to provide its employees with vacation benefits,
either paid or unpaid. An employer is required to pay these benefits only if it has
established a policy, promised, or contracted to provide them. See 820 ILCS 115/2.
An employer must pay an employee for all accrued or earned vacation upon separation
from employment. An employer cannot maintain a policy or employment contract requiring
the forfeiture by an employee of accrued vacation upon separation from employment for
any reason. 820 ILCS 115/5; 56 Ill. Adm. Code 300.520. The only exception to this rule is
if the employer is party to a collective bargaining agreement with a union that provides
otherwise. 820 ILCS 115/5.
An employer can implement a vacation policy where employees must use vacation time
by a certain date or lose it (a “use-it-or-lose-it” policy), but must permit employees a
reasonable opportunity to use the leave. 56 Ill. Adm. Code 300.520(e).
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Indiana
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In Indiana, employers are not required to provide employees with vacation benefits,
either paid or unpaid. If an employer chooses to provide such benefits, it must comply
with the terms of its established policy or employment contract.
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See Indiana
Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die &Mold, Inc.
v. Western, 448 N.E.2d 44 (Ind. App. 1983).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. See Williams v. Riverside, 846 N.E.2d 738
(Ind. App. 2006); Damon Corp. v. Estes, 750 N.E.2d 891 (Ind. App. 2001); Indiana Heart
Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Indiana Heart Associates, P.C. v.
Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die &Mold, Inc. v. Western, 448 N.E.2d 44
(Ind. App. 1983).
An employer is required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. See Haxton v. McClure Oil Corp., 697 N.E.2d 1277 (Ind. App. 1998).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Indiana Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die
&Mold, Inc. v. Western, 448 N.E.2d 44 (Ind. App. 1983).
Neither Indiana’s Legislature nor its courts have stated whether an employer can
lawfully implement a “use-it-or-lose-it” vacation policy requiring employees to use their
vacation leave by a specific date or lose it. However, based on the State’s strong policy
favoring freedom of contract, it is likely such a policy would be lawful so long as
employees were made aware of the policy prior to it being enforced and so long as
employees had reasonable opportunities to use the leave prior to losing it. See Naugle v.
Beech Grove City Schools, 864 N.E.2d 1058 (Ind. Sup. Ct. 2007).
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Iowa
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In Iowa, employers are not required to provide employees with vacation benefits, either
paid or unpaid. If an employer chooses to provide such benefits, it must comply with the
terms of its established policy or employment contract. Iowa Code 91A.2(7)(b).
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See Iowa
Division of Labor Wage FAQs.
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. See Iowa Division of Labor Wage FAQs.
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Iowa Code 91A.2(7(b).
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. See Iowa Division of Labor Wage FAQs.
An employer may cap the amount of vacation leave an employee may accrue over time.
See Iowa Division of Labor Wage FAQs.
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. See Iowa Division of Labor Wage FAQs.
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Kansas
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In Kansas, employers are not required to provide employees with vacation benefits,
either paid or unpaid. KS Dept. of Labor Workplace Laws FAQs. If an employer chooses
to provide such benefits, it must comply with the terms of its established policy or
employment contract. See Sweet v. Stormont Vail Regional Medical Center, 231 Kan.
604, 647 P.2d 1274 (Kan. Sup. Ct. 1982); Mid American Aerospace, Inc. v. Dept. of
Human Resources, 10 Kan. App. 2d 144, 694 P.2d 1321 (1985).
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See Sweet v.
Stormont Vail Regional Medical Center, 231 Kan. 604, 647 P.2d 1274 (Kan. Sup. Ct.
1982); Mid American Aerospace, Inc. v. Dept. of Human Resources, 10 Kan. App. 2d
144, 694 P.2d 1321 (1985).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. See Sweet v. Stormont Vail Regional
Medical Center, 231 Kan. 604, 647 P.2d 1274 (Kan. Sup. Ct. 1982); Mid American
Aerospace, Inc. v. Dept. of Human Resources, 10 Kan. App. 2d 144, 694 P.2d 1321
(1985).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Sweet v. Stormont Vail Regional
Medical Center, 231 Kan. 604, 647 P.2d 1274 (Kan. Sup. Ct. 1982); Mid American
Aerospace, Inc. v. Dept. of Human Resources, 10 Kan. App. 2d 144, 694 P.2d 1321
(1985).
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. See Sweet v. Stormont Vail Regional Medical Center, 231 Kan. 604, 647 P.2d
1274 (Kan. Sup. Ct. 1982); Mid American Aerospace, Inc. v. Dept. of Human Resources,
10 Kan. App. 2d 144, 694 P.2d 1321 (1985).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Sweet v. Stormont Vail Regional Medical Center, 231 Kan. 604, 647 P.2d 1274
(Kan. Sup. Ct. 1982); Mid American Aerospace, Inc. v. Dept. of Human Resources, 10
Kan. App. 2d 144, 694 P.2d 1321 (1985).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. See Mid American Aerospace, Inc. v. Dept. of Human
Resources, 10 Kan. App. 2d 144, 694 P.2d 1321 (1985).
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Kentucky
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In Kentucky, employers are not required to provide employees with vacation benefits,
either paid or unpaid. KY Office of Workplace Standards FAQs. If an employer chooses
to provide such benefits, it must comply with the terms of its established policy or
employment contract. See Berrier v. Bizer, 57 S.W.3d 271 (Kent. Sup. Ct. 2001).
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See Berrier v.
Bizer, 57 S.W.3d 271 (Kent. Sup. Ct. 2001).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. See Berrier v. Bizer, 57 S.W.3d 271 (Kent.
Sup. Ct. 2001).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See Berrier v. Bizer, 57 S.W.3d 271 (Kent.
Sup. Ct. 2001).
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. See Berrier v. Bizer, 57 S.W.3d 271 (Kent. Sup. Ct. 2001).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Berrier v. Bizer, 57 S.W.3d 271 (Kent. Sup. Ct. 2001).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. See Berrier v. Bizer, 57 S.W.3d 271 (Kent. Sup. Ct. 2001).
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Louisiana
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In Louisiana, employers are not required to provide employees with vacation benefits,
either paid or unpaid. If an employer chooses to provide such benefits, it must comply
with the terms of its established policy or employment contract.
An employer cannot refuse to pay accrued or earned vacation to employees upon
separation from employment merely because they were terminated, regardless of the
reason. See Beard v. Summit Institute of Pulmonary Medicine, 707 So.2d 1233 (La. Sup.
Ct. 1998).
Accrued or earned vacation must be paid to an employee upon separation from
employment if the company policy or employment contract is silent on the matter. See
Beard v. Summit Institute of Pulmonary Medicine, 707 So.2d 1233 (La. Sup. Ct. 1998).
Louisiana courts are split regarding whether an employer can refuse to pay an employee
accrued or earned vacation upon separation from employment if the employee fails to
comply with certain conditions, such as giving two weeks notice. See e.g., Beard v.
Summit Institute of Pulmonary Medicine, 707 So.2d 1233 (La. Sup. Ct. 1998) (Supreme
Court refused to explicitly state any restriction on payment of wages upon separation
from employment was unlawful, but cited favorably to those cases that do); Lee v. Katz
and Bestoff, Inc., 479 So.2d 459 (La. App. 1st Cir. 1985) (employer cannot place
restrictions on employees to receive payment for accrued vacation). Contra., e.g.,
Huddleston v. Dillard Department Store, 638 So.2d 383 (La. App. 5th Cir. 1994) and
Landry v. Pauli’s, Inc., 496 So.2d 431 (La. App. 5th Cir. 1986) (employers can place
restrictions on employees when paying out accrued vacation upon separation from
employment).
An employer may cap the amount of vacation leave an employee may accrue over time.
See Wyatt v. Avoyelles Parish School Board, 831 So.2d 906 (La. Sup. Ct. 2002); Beard
v. Summit Institute of Pulmonary Medicine, 707 So.2d 1233 (La. Sup. Ct. 1998).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. See Wyatt v. Avoyelles Parish School Board, 831 So.2d
906 (La. Sup. Ct. 2002).
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Maine
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In Maine, employers are not required to provide employees with vacation benefits, either
paid or unpaid. Maine Dept. of Labor FAQs. If an employer chooses to provide such
benefits, it must comply with the terms of its established policy or employment contract.
See Rowell v. Jones & Vining, Inc., 524 A.2d 1208 (1987).
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. Maine Dept. of
Labor FAQs; See Rowell v. Jones & Vining, Inc., 524 A.2d 1208 (1987).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year. Maine Dept. of Labor FAQs; See Rowell v.
Jones & Vining, Inc., 524 A.2d 1208 (1987).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. Maine Dept. of Labor FAQs; See Rowell v.
Jones & Vining, Inc., 524 A.2d 1208 (1987).
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. Maine Dept. of Labor FAQs; See Rowell v. Jones & Vining, Inc., 524 A.2d 1208
(1987).
An employer may cap the amount of vacation leave an employee may accrue over time.
Maine Dept. of Labor FAQs; See Rowell v. Jones & Vining, Inc., 524 A.2d 1208 (1987).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it. Maine Dept. of Labor FAQs; See Rowell v. Jones & Vining,
Inc., 524 A.2d 1208 (1987).
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Maryland
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In Maryland, employers are not required to provide employees with vacation benefits,
either paid or unpaid. The Maryland Guide to Wage Payment and Employment Standards.
If an employer chooses to provide such benefits, it must comply with the terms of its
established policy or employment contract.
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment, so long as the
employer has informed its employees in writing leave will not be paid. Md. Code § 3-505
(b).
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they
fail to comply with specific requirements, such as giving two weeks notice or being
employed as of a specific date of the year, so long as employees have been informed of
the policy in writing. See Md. Code § 3-505(b).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. The Maryland Guide to Wage Payment and
Employment Standards.
An employer is required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter. The Maryland Guide to Wage Payment and Employment Standards.
An employer may cap the amount of vacation leave an employee may accrue over time,
so long as employees have been informed of the policy in writing. See Md. Code § 3-505
(b).
An employer may implement a “use-it-or-lose-it” policy requiring employees to use their
leave by a set date or lose it, so long as employees have been informed of the policy in
writing. See Md. Code § 3-505(b).
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