Can an employer, who has an employee handbook stating the paid vacation time policy, now refuse to pay earned vacation time?

Question Details:

An employer who has a written employee handbook that states the paid vacation policy is now refusing to pay employees for earned vacation time. Also, is a use it or lose it vacation policy legal in NH?

Asked 11/12/2009 under Employment and Labor | 525 View(s) | More Legal Topics

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Employment and Labor Law Answers

  In New Hampshire, an employer can change a policy so long as he or she does it prior to the policy coming due.  But when does vacation time come due--when you earn it (as per the policy, for example, each month of work), or when you want to take it?  And also, is an employee handbook to be construed as a "contract" or simply an expression of policy.  All of this can be argued both ways.  In other words, employees denied vacation time that they have been promised may certainly have a case, depending upon how the court interprets "earning" and the handbook.  You should consult an attorney about this--many will give you a first consultation without a fee.  As for "use it or lose it" in New Hampshire, it's legal because no law in the state says it isn't.

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