Vacation Laws: Massachusetts-New Jersey
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State
Vacation Law Summary
Massachusetts
In Massachusetts, an employer is not required to provide its employees with vacation
benefits, either paid or unpaid.
MA Off. of Labor FAQs.  If an employer chooses to
provide such benefits, it must comply with the terms of its established policy or
employment contract.

If an employer chooses to provide vacation benefits, it must pay employees for the
accrued or earned leave upon separation from employment, regardless of the reason.
MA Atty. Gen. Advisory 99/1.  An employer cannot enforce a vacation leave policy
where an employee forfeits all or part of their accrued or vested vacation upon
separation from employment.
MA Atty. Gen. Advisory 99/1.

An employer may place a reasonable cap on the amount of vacation leave employees
may accrue.
MA Atty. Gen. Advisory 99/1.

An employer may lawfully 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 a reasonable
opportunity to use their leave.
MA Atty. Gen. Advisory 99/1.
Michigan
In Michigan, employers are not required to provide employees with vacation benefits,
either paid or unpaid. See
Slomka v. Hamtramck Housing Commission, 2006 Mich. App.
Lexis 2013 (2006).  If an employer chooses to provide such benefits, it must comply with
the terms of its established policy or employment contract.
Mich.Comp. Laws 408.473;
see also
Briney v. Kelsey-Hayes and Variety Corp., 2001 Mich. App. Lexis (2001).

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
employees have signed contracts or written statements agreeing to the policy. See
Mich.
Dept. of Labor & Economic Growth: Payment of Fringe Benefits at Termination.

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 signed contracts
or written statements agreeing to the policy. See
Mich. Dept. of Labor & Economic
Growth: Payment of Fringe Benefits at Termination.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Mich. Comp. Laws 408.473.

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
Mich. Dept. of Labor & Economic Growth: Payment of Fringe Benefits at
Termination.

An employer may cap the amount of vacation leave an employee may accrue over time,
so long as employees have signed contracts or written statements agreeing to the
policy. See
Mich. Dept. of Labor & Economic Growth: Payment of Fringe Benefits at
Termination.

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 the employee has agreed to the policy in writing.
See
Mich. Comp. Laws 408.473.
Minnesota
An employer is not required to provide its 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
Lee v.
Fresenius Medical Care, Inc.
, 741 N.W.2d 117 (Minn. S.Ct. 2007).

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
Lee v. Fresenius Medical Care, Inc.,
741 N.W.2d 117 (Minn. S.Ct. 2007).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Lee v. Fresenius Medical Care, Inc.,
741 N.W.2d 117 (Minn. S.Ct. 2007).

Neither Minnesota’s Legislature nor its courts have stated whether 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.

An employer may cap the amount of vacation leave an employee may accrue over time,
so long as employees have signed contracts or written statements agreeing to the
policy. See
Lee v. Fresenius Medical Care, Inc., 741 N.W.2d 117 (Minn. S.Ct. 2007).

An employer would likely be able to implement a “use-it-or-lose-it” policy requiring
employees to use their leave by a set date or lose it, so long as the employee has agreed
to the policy in writing. See
Lee v. Fresenius Medical Care, Inc., 741 N.W.2d 117 (Minn.
S.Ct. 2007).
Mississippi
Mississippi has no laws requiring employers to provide employees with vacation
benefits, either paid or unpaid.  Mississippi’s Legislature and its courts are silent
regarding any obligation an employer may have regarding vacation leave, including
whether an employer must pay an employee accrued vacation leave upon separation
from employment.  Due to the silence of Mississippi authorities on the matter of vacation
leave, it is likely employer’s are free to establish the vacation leave policy of their
choosing.  An employer would be required to comply with the terms of a valid
employment contract containing vacation leave provisions.
Missouri
In Missouri, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
MO Dept. of Labor and Industrial Relations FAQ.  If an employer
chooses to provide such benefits, it must comply with the terms of its established policy
or employment contract. See
City of Webster Groves v. Institutional and Public
Employees Union
, 524 S.W.2d 162 (Mo. App. 1975).

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See
Brackett v.
Easton Boot and Shoe Co.
, 388 S.W.2d 842 (Mo. Sup. Ct. 1965).

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. Jones, 562 S.W.2d 391 (Mo.
App. 1978);
City of Webster Groves v. Institutional and Public Employees Union, 524 S.
W.2d 162 (Mo. App. 1975).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Brackett v. Easton Boot and Shoe
Co.
, 388 S.W.2d 842 (Mo. Sup. Ct. 1965).

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
Brackett v. Easton Boot and Shoe Co., 388 S.W.2d 842 (Mo. Sup. Ct. 1965).

An employer may cap the amount of vacation leave an employee may accrue over time.
See
Brackett v. Easton Boot and Shoe Co., 388 S.W.2d 842 (Mo. Sup. Ct. 1965).

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
City of Webster Groves v. Institutional and Public
Employees Union
, 524 S.W.2d 162 (Mo. App. 1975).
Montana
In Montana, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
MT Dept. of Labor and Industry FAQ; See Langager v. Crazy Creek
Products, Inc
., 287 Mont. 445; 954 P.2d 1169 (Mt. Sup. Ct. 1998).  If an employer
chooses to provide such benefits, it must comply with the terms of its employment
contract or established policy.
MT Dept. of Labor and Industry FAQ.

Once an employee earns vacation leave, it cannot be forfeited for any reason.
MT Dept.
of Labor and Industry FAQ; See Langager v. Crazy Creek Products, Inc., 287 Mont. 445;
954 P.2d 1169 (Mt. Sup. Ct. 1998).  This means an employee must be paid for all accrued
vacation pay upon separation from employment, regardless of the reason.
MT Dept. of
Labor and Industry FAQ; See Langager v. Crazy Creek Products, Inc., 287 Mont. 445;
954 P.2d 1169 (Mt. Sup. Ct. 1998).

An employer cannot require an employee to comply with specific requirements in order
to receive accrued vacation leave upon separation from employment, such as giving
timely notice or not being terminated.
MT Dept. of Labor and Industry FAQ; See Langager
v. Crazy Creek Products, Inc.
, 287 Mont. 445; 954 P.2d 1169 (Mt. Sup. Ct. 1998).

An employer may place a reasonable cap on the vacation leave an employee can
accrue.
MT Dept. of Labor and Industry FAQ.

An employer cannot implement a ‘use it or lose it’ vacation policy requiring employees to
use their vacation leave by a set date or lose it.
MT Dept. of Labor and Industry FAQ;
See
Langager v. Crazy Creek Products, Inc., 287 Mont. 445; 954 P.2d 1169 (Mt. Sup. Ct.
1998).
Nebraska
In Nebraska, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
Neb. Dept. of Labor FAQ.  If an employer chooses to provide such
benefits, it must comply with the terms of its established policy or employment contract.
See
Roseland v. Strategic Staff Management, Inc., 272 Neb. 434, 722 N.W.2d 499 (Neb.
Sup. Ct. 2006);
Neb. Dept. of Labor FAQ.

In Nebraska, an employer can require employees to meet certain requirements before
they can earn vacation leave.
Neb. Dept. of Labor FAQ.   However, once employees
earn vacation leave according to an employer's policy or contract, an employer cannot
deny payment for such vacation leave upon separation from employment, regardless of
the reason. See Neb. Rev. Stat. § 48-1229(4);
Roseland v. Strategic Staff Management,
Inc.
, 272 Neb. 434, 722 N.W.2d 499 (Neb. Sup. Ct. 2006); Neb. Dept. of Labor FAQ.

An employer may lawfully cap the number of vacation leave hours an employee can
accrue.
Neb. Dept. of Labor FAQ.

An employer cannot implement a ‘use it or lose it’ vacation policy requiring employees to
use their earned vacation leave by a set date or lose it. See Neb. Rev. Stat. § 48-1229
(4);
Roseland v. Strategic Staff Management, Inc., 272 Neb. 434, 722 N.W.2d 499 (Neb.
Sup. Ct. 2006).
Nevada
Nevada has no laws requiring employers to provide employees with vacation benefits,
either paid or unpaid.
Nev. Labor Commissioner FAQs.

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See
Nev. Labor
Commissioner 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
Nev. Labor Commissioner FAQs.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Nev. Labor Commissioner FAQs.

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
Nev. Labor Commissioner FAQs.

An employer may cap the amount of vacation leave an employee may accrue over time.
See
Nev. Labor Commissioner 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
Nev. Labor Commissioner FAQs.
New
Hampshire
New Hampshire has no laws requiring employers to provide employees with vacation
benefits, either paid or unpaid.

Neither New Hampshire’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,
  • cap the vacation leave an employee may accrued over time,
  • implement a “use-it-or-lose-it” policy requiring employees to use their leave by a
    set date or lose it.

Although New Hampshire’s authorities are silent regarding many vacation policy issues,
based on the contractual emphasis New Hampshire has placed on vacation policies, an
employer is likely free to implement the vacation policy of its choosing. NH RSA 279:49 III.  
An employer must inform its employees in writing of its policies regarding vacation
benefits, holiday pay, sick leave, severance, other types of leave, or other fringe
benefits. NH RSA 279:49 III.  An employer would be required to comply with the terms of
its policy or contract.
New Jersey
In New Jersey, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
NJ Dept. of Labor FAQs.  If an employer chooses to provide these
benefits, it is only required to comply with its established policy or employment contract.
NJ Dept. of Labor FAQs.

Neither New Jersey’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,
  • cap the vacation leave an employee may accrued over time,
  • implement a “use-it-or-lose-it” policy requiring employees to use their leave by a
    set date or lose it.

Although New Jersey’s authorities are silent regarding many vacation policy issues,
based on the contractual emphasis New Jersey has placed on vacation policies, an
employer is likely free to implement the vacation policy of its choosing.
NJ Dept. of Labor
FAQs.  An employer would be required to comply with the terms of its policy or contract.
NJ Dept. of Labor FAQs.
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