Vacation Laws: New Mexico - South Carolina
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New Mexico - South Carolina
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State
Vacation Law Summary
New Mexico
In New Mexico, an employer is not required to provide employees with vacation benefits,
either paid or unpaid.
NM Dept. of Workforce Solutions FAQs.  If an employer chooses to
provide such benefits, it must comply with the terms of its established policy or
employment contract.  
NM Dept. of Workforce Solutions FAQs.

Neither New Mexico’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 Mexico’s authorities are silent regarding many vacation policy issues,
based on the contractual emphasis New Mexico has placed on vacation policies, an
employer is likely free to implement the vacation policy of its choosing.
NM Dept. of
Workforce Solutions FAQs.  An employer would be required to comply with the terms of
its policy or contract.
NM Dept. of Workforce Solutions FAQs.
New York
In New York, an employer is not required to provide employees with vacation benefits,
either paid or unpaid.
NY 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.
NY Labor Law § 198-c.

Neither New York’s Legislature nor its court have explicitly stated whether an employer
may implement a policy or enter into employment contracts requiring employees to forfeit
accrued vacation upon separation from employment, regardless of the reason.  
However, 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 fail to comply with specific requirements, such as giving two weeks
notice or being employed as of a specific date of the year.  Employees must be provided
adequate notice of any such policy for it to have effect. See
Gennes v. Yellow Book of
NY
, 23 A.D.3d 520, 806 N.Y.S.2d 646 (NY Sup. Ct. App. 2005); Mahoney v. Olean
General Hospital
, 277 A.D.2d 1046, 716 N.Y.S.2d 174 (NY Sup. Ct. App. 2000);
Glenville Gage Co. v. Industrial Board of Appeals of NY, 52 N.Y.2d 777, 417 N.E.2d
1009 (NY Ct. App. 1980); NY Labor Law § 195(5).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. NY Labor Law § 198-c.

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.
NY Dept. of Labor FAQs.

An employer may cap the amount of vacation leave an employee may accrue over time,
so long as employees are given prior notice of the policy. See
Glenville Gage Co. v.
Industrial Board of Appeals of NY
, 52 N.Y.2d 777, 417 N.E.2d 1009 (NY Ct. App. 1980);
NY Labor Law § 195(5).

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 are given prior notice of the policy.
See
Glenville Gage Co. v. Industrial Board of Appeals of NY, 52 N.Y.2d 777, 417 N.E.2d
1009 (NY Ct. App. 1980); NY Labor Law § 195(5).
North Carolina
In North Carolina, employers are not required to provide employees with vacation
benefits, either paid or unpaid.
NC 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.
N.C. Gen. Stat. § 95-25.2(16).

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 properly notified its employees in writing of the vacation policy.
N.C. Gen.
Stat. § 95-25.12; NC Dept. of Labor 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, so long as the employer has properly notified
its employees in writing of the vacation policy.
N.C. Gen. Stat. § 95-25.12; NC Dept. of
Labor FAQs.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it.
N.C. Gen. Stat. § 95-25.12; NC Dept. of
Labor FAQs.

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.
N.C. Gen. Stat. § 95-25.12.

An employer may cap the amount of vacation leave an employee may accrue over time,
so long as the employer has properly notified its employees in writing of the vacation
policy.
N.C. Gen. Stat. § 95-25.12; NC Dept. of Labor 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, so long as the employer has properly notified its employees
in writing of the vacation policy.
N.C. Gen. Stat. § 95-25.12; NC Dept. of Labor FAQs.
North Dakota
In North Dakota, 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.

In North Dakota, an employer cannot require an employee to forfeit accrued or earned
vacation leave upon separation from employment, regardless of the reason.
ND Admin.
Code § 46-02-07-02(12).

An employer may lawfully cap the vacation leave an employee can accrued over time.
See
ND Admin. Code § 46-02-07-02(12).

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 the employer has properly notified its
employees of the vacation policy and the employee has a reasonable opportunity to use
the vacation leave.
ND Admin. Code § 46-02-07-02(12).

All paid leave is considered vacation leave, unless the employer explicitly divides
vacation leave from sick or other types of leave.
ND Admin. Code § 46-02-07-02(12).
Ohio
In Ohio, 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, so long as the
forfeiture policy is clear and explicit and the employees have notice of the policy. See
Ervin v. Oak Ridge Treatment Center Acquisition Corp., 2006 Ohio 3851 (OH App.
2006).

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 the forfeiture policy is clear and
explicit and the employees have notice of the policy. See
Ervin v. Oak Ridge Treatment
Center Acquisition Corp.
, 2006 Ohio 3851 (OH App. 2006).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Fridrich v. Seuffert Construction Co.,
2006 Ohio 1076 (OH App. 2006).

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
Fridrich v. Seuffert Construction Co., 2006 Ohio 1076 (OH App. 2006).

An employer may lawfully cap the vacation leave an employee can accrued over time,
so long as the employer has properly notified its employees of the vacation policy. See
Ervin v. Oak Ridge Treatment Center Acquisition Corp., 2006 Ohio 3851 (OH App.
2006).

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 the employer has properly notified its
employees of the vacation policy. See
Van Barg v. Dixon Ticonderoga Co., 2003 Ohio
2531 (OH App. 2003).
Oklahoma
In Oklahoma, 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. Okla. Stat. § 165.1(4);
Okla. Admin. Rules § 380:30-1-8.

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment.
Okla. Admin.
Rules § 380:30-1-5.

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.
Okla. Admin. Rules § 380:30-1-5.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it.
Okla. Admin. Rules § 380:30-1-5.

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.
Okla. Admin. Rules § 380:30-1-5.

An employer may lawfully cap the vacation leave an employee can accrued over time,
so long as the employer has properly notified its employees of the vacation policy.
Okla.
Admin. Rules § 380:30-1-5.

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 the employer has properly notified its
employees of the vacation policy.
Okla. Admin. Rules § 380:30-1-5.
Oregon
In Oregon, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
OR Bureau of Labor and Industries FAQs: Fringe Benefits.  If an
employer chooses to provide such benefits, it must comply with the terms of its
established policy or employment contract. OR Bureau of Labor FAQs; See
Wyss v.
Inskeep
, 73 Ore. App. 661, 699 P.2d 1161 (1985); Henderson-Rubio v. The May
Department Stores Company
, 53 Ore. App. 575, 632 P.2d 1289 (1981).

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment.
OR Bureau of
Labor and Industries FAQs: Fringe Benefits.

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
are terminated or fail to comply with specific requirements, such as giving two weeks
notice or being employed as of a specific date of the year.
OR Bureau of Labor and
Industries FAQs: Fringe Benefits; See Wheeler v. Mission Electric & Plumbing Supply,
Inc.
, 267 Ore. 209, 515 P.2d 1323 (Ore. Sup. Ct. 1973).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it.
OR Bureau of Labor and Industries FAQs:
Fringe Benefits.

An employer is required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent or
ambiguous about the matter.
OR Bureau of Labor and Industries FAQs: Fringe Benefits.

An employer may lawfully cap the vacation leave an employee can accrued over time,
so long as the employer has properly notified its employees of the vacation policy, so
long as the employer has properly notified its employees of the vacation policy.
OR
Bureau of Labor and Industries FAQs: Fringe Benefits.

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 the employer has properly notified its
employees of the vacation policy and gives then a reasonable opportunity to use their
vacation leave before it is lost.
OR Bureau of Labor and Industries FAQs: Fringe Benefits.
Pennsylvania
In Pennsylvania, employers are not required to provide employees with vacation
benefits, either paid or unpaid.
PA Dept. of Labor: Wage and Hour FAQs.  If an employer
chooses to provide such benefits, it must comply with the terms of its established policy
or employment contract.
PA Dept. of Labor: Wage and Hour FAQs, PA Wage Payment
and Collection Law, Act of 1961, P.L. 637, No. 329, § 2.1.

An employer must pay an employee for accrued vacation upon separation from
employment if its policy or contract provides for such payment.  
PA Wage Payment and
Collection Law, Act of 1961, P.L. 637, No. 329, § 2.1.

Neither Pennsylvania’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 Pennsylvania’s authorities are silent regarding many vacation policy issues,
based on the contractual emphasis Pennsylvania has placed on vacation policies, an
employer is likely free to implement the vacation policy of its choosing.
PA Dept. of Labor:
Wage and Hour FAQs.  An employer would be required to comply with the terms of its
policy or contract.
PA Dept. of Labor: Wage and Hour FAQs.
Rhode Island
In Rhode Island, 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.

According to Rhode Island law, an employer must pay an employee who has completed
at least one year of service, upon separation from employment, for any vacation pay
accrued in accordance with company policy or contract on the next regular payday for
the employee.
RI Stat. § 28-14-4(b).  This also means an employer cannot require an
employee to comply with specific requirements to qualify for payment of vacation leave
upon separation from employment, such as provide a certain number of days notice of
intent to leave or not be terminated for misconduct, so long as the employee has at least
one year of service with the employer.

Neither Rhode Island’s Legislature or courts have clarified whether an employer can cap
accrued leave (although this is probably lawful) or implement a “use-it-or-lose-it” policy
requiring employees to use their leave by a set date or lose it.

Some employers are required to 1 1/2 times the wage rate for working on holidays and
Sundays.  Visit their website for more information.
South Carolina
In South Carolina, employers are not required to provide employees with vacation
benefits, either paid or unpaid.
SC 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.
SC Dept. of Labor FAQs.  An employer is required to notify its
employees in writing of any benefit policies.
SC Code § 41-10-30, SC Dept. of Labor
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
O’Neal v.
Intermedical Hospital of SC
, 355 S.C. 499, 585 S.E.2d 526 (SC App. 2003).

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
O’Neal v. Intermedical Hospital of SC,
355 S.C. 499, 585 S.E.2d 526 (SC App. 2003).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it.
SC Code § 41-10-10(b).

Neither South Carolina’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. .
See
SC Code § 41-10-10(b), O’Neal v. Intermedical Hospital of SC, 355 S.C. 499, 585 S.
E.2d 526 (SC App. 2003).

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
SC Code § 41-10-10(b), O’Neal v. Intermedical
Hospital of SC
, 355 S.C. 499, 585 S.E.2d 526 (SC App. 2003).
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New Mexico - South Carolina
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