Vacation Laws: South Dakota - Wyoming
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State
Vacation Law Summary
South Dakota
South Dakota has no laws requiring employers to provide employees with vacation
benefits, either paid or unpaid.   South Dakota’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 South Dakota 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 omply with the terms of a valid
employment contract containing vacation leave provisions.
Tennessee
In Tennessee, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
TN Code § 50-2-103(3).  If an employer chooses to provide such
benefits, it must comply with the terms of its established policy or employment contract.
TN Code § 50-2-103(3), TN Atty Gen. Opinion No. 06-169.

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment.
TN Atty Gen.
Opinion No. 06-169.

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.
TN Atty Gen. Opinion No. 06-169.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
TN Atty Gen. Opinion No. 06-169.

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.
TN Atty Gen. Opinion No. 06-169.

An employer may cap the amount of vacation leave an employee may accrue over time.
See TN Atty Gen. Opinion No. 06-169.

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
TN Atty Gen. Opinion No. 06-169.
Texas
In Texas, employers are not required to provide employees with vacation benefits, either
paid or unpaid.
TX Labor Law FAQs. If an employer chooses to provide such benefits, it
must comply with the terms of its established policy or employment contract.
TX Labor
Code § 61.001(7)(B); TX Admin. Code § 821.25(a).

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment.
TX Admin. Code
§ 821.25(a); See Instate Hosts, Inc. v. Thompson, 435 S.W.2d 957 (TX App.-Dallas
1968).

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
TX Labor Law FAQs.

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
Instate Hosts, Inc. v. Thompson, 435
S.W.2d 957 (TX App.-Dallas 1968);
Chester v. Jones, 386 S.W.2d 544 (TX App.-Tyler
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, unless the employer has an established practice of doing so.
TX Admin. Code §
821.25(a); See Instate Hosts, Inc. v. Thompson, 435 S.W.2d 957 (TX App.-Dallas 1968).

An employer may cap the amount of vacation leave an employee may accrue over time.
See
TX Labor Law 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
TX Labor Law FAQs.
Utah
In Utah, 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.  
UT Admin. Code R610-3-4(B)(1);
UT Labor Comm. FAQs.

An employer must pay an employee for accrued vacation upon separation from
employment if its policy or contract provides for such payment.
UT Admin. Code R610-3-4
(B)(1); UT Labor Comm. FAQs.

Neither Utah’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 Utah’s authorities are silent regarding many vacation policy issues, based on
the contractual emphasis Utah has placed on vacation policies, an employer is likely free
to implement the vacation policy of its choosing, including policies providing for the
forfeiture of accrued vacation leave upon separation from employment.
UT Admin. Code
R610-3-4(B)(1). An employer is required to comply with the terms of the policy it
chooses to implement.
UT Admin. Code R610-3-4(B)(1).
Vermont
In Vermont, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
VT 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.
VT Dept. of Labor FAQs.

An employer must pay an employee for accrued vacation upon separation from
employment if its policy or contract provides for such payment.
VT Dept. of Labor FAQs.

Neither Vermont’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 Vermont’s authorities are silent regarding many vacation policy issues, based
on the contractual emphasis Vermont has placed on vacation policies, an employer is
likely free to implement the vacation policy of its choosing.
VT Dept. of Labor FAQs.  An
employer is required to comply with the terms of the policy it chooses to implement.
VT
Dept. of Labor FAQs.
Virginia
In Virginia, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
VA Dept. of Labor: Wage Payment FAQs.  If an employer chooses
to provide such benefits, it must comply with the terms of its established policy or
employment contract.
VA Dept. of Labor: Wage Payment FAQs.

An employer must pay an employee for accrued vacation upon separation from
employment if its policy or contract provides for such payment.
VA Dept. of Labor: Wage
Payment FAQs.

Neither Virginia’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 Virginia’s authorities are silent regarding many vacation policy issues, based on
the contractual emphasis Virginia has placed on vacation policies, an employer is likely
free to implement the vacation policy of its choosing.
VA Dept. of Labor: Wage Payment
FAQs.  An employer is required to comply with the terms of the policy it chooses to
implement.
VA Dept. of Labor: Wage Payment FAQs.
Washington
In Washington, employers are not required to provide employees with vacation benefits,
either paid or unpaid.
WA Dept. of Labor: Vacation Leave.  If an employer chooses to
provide such benefits, it must comply with the terms of its established policy or
employment contract.
WA Dept. of Labor: Vacation Leave.

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. See
Lapo v.
Avalon Music, Inc.
, 2001 Wash. App. Lexis 1156 (2001); Walters v. Center Electric,
Inc.
, 8 Wn. App. 322 (1973).

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
Walters v. Center Electric, Inc., 8 Wn.
App. 322 (1973).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See WA Dept. of Labor & Industries 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
Lapo v. Avalon Music, Inc., 2001 Wash. App. Lexis 1156 (2001); Walters v.
Center Electric, Inc.
, 8 Wn. App. 322 (1973).

An employer may cap the amount of vacation leave an employee may accrue over time.
See
Walters v. Center Electric, Inc., 8 Wn. App. 322 (1973).

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
Walters v. Center Electric, Inc., 8 Wn. App. 322
(1973).
West Virginia
In West Virginia, 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.
WV Code § 21-5-
1(c) & (l), 3(a).

An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment, if the forfeiture
policy is clearly and explicitly stated in the employer’s established policy or employment
contract. See
Meadows v. Wal-Mart Stores, Inc., 207 W. Va. 203, 530 S.E.2d 676 (WV
Sup. Ct. 1999).

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, if the forfeiture policy is clearly and explicitly
stated in the employer’s established policy or employment contract. See
Meadows v. Wal-
Mart Stores, Inc.
, 207 W. Va. 203, 530 S.E.2d 676 (WV Sup. Ct. 1999).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it.
WV Code § 21-5-1(c) & (l), 3(a).

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
Meadows v. Wal-Mart Stores, Inc., 207 W. Va. 203, 530 S.E.2d 676 (WV
Sup. Ct. 1999).

An employer may cap the amount of vacation leave an employee may accrue over time.
See
Meadows v. Wal-Mart Stores, Inc., 207 W. Va. 203, 530 S.E.2d 676 (WV Sup. Ct.
1999).

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
Meadows v. Wal-Mart Stores, Inc., 207 W. Va. 203, 530 S.E.2d 676 (WV Sup. Ct.
1999).
Wisconsin
In Wisconsin, 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. Wisc. Stat. 109.01(3);
WI
Labor
Standards Bureau: Labor Standards Laws.

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
Tasker v. Chieftain Wildrice Company,
263 Wis.2d 432, 662 N.W.2d 679 (Ct. App. 2003).

An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. See
WI Labor Standards Bureau: Labor
Standards Laws.

An employer may cap the amount of vacation leave an employee may accrue over time.
See
Sinclair v. Hillhaven Corp., 161 Wis.2d 935, 469 N.W.2d 249 (Ct. App. 1991).

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
Sinclair v. Hillhaven Corp., 161 Wis.2d 935, 469 N.W.2d 249 (Ct. App. 1991).

Neither Wisconsin’s Legislature nor its courts have given any significant guidance
regarding whether an employer may establish a policy or enter into a contract denying
employees payment for accrued vacation leave upon separation from employment
regardless of the reason.  However, based on the contractual emphasis Wisconsin
authorities place on vacation policies, such forfeiture provision are likely lawful, so long
as an employee was given sufficient opportunity to use their vacation leave while
employed.

Wisconsin authorities are also silent regarding whether an employer may deny payment
for accrued vacation to an employee upon separation from employment if its policy or
contract is silent on the matter.  Due to such benefits qualifying as wages under
Wisconsin’s wage payment laws, an employer would likely be required to pay vacation
leave to an employee upon separation from employment if the policy did not contain some
sort of forfeiture provision. Wisc. Stat. 109.01(3).
Wyoming
In Wyoming, employers are not required to provide employees with vacation benefits,
either paid or unpaid. WY Atty Gen. Opinion No. 63-53.  If an employer chooses to
provide such benefits, it must comply with the terms of its established policy or
employment contract.
WY Stat. § 27-4-507; WY Atty Gen. Opinion No. 63-53.

In Wyoming, an employer cannot require an employee to forfeit accrued or earned
vacation leave upon separation from employment, regardless of the reason, once the
vacation is earned according the employers policy.
WY Dept. of Employment FAQs.
An employer may place time requirements on employees before they accrue or earn
vacation leave, such as having to be employed on their anniversary date.
WY Dept. of
Employment FAQs.

Neither Wyoming’s Legislature nor its courts have given any significant guidance
regarding other potential vacation policy issues.  They are silent regarding whether an
employer may:
  • 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.
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South Dakota - Wyoming
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