Can an employer implement a policy that would result in the employee losing vacation time if suspended or forced to use time during suspension?

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Can an employer implement a policy that would result in the employee losing vacation time if suspended or forced to use time during suspension?

Basically an employee suspended for attendance and occurrences would either lose the same amount of vacation time as the suspension or forced to use their vacation time during the suspension.

Asked on June 20, 2012 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, such a policy is legal. The law does not require employers to provide vacation time in the first instance--it is completely voluntary on their part whether to do so. Since it is voluntary on their part, employers are allowed to place restrictions or conditions on it, including "use it or lose it" schemes or requirements that vacation time be sued for suspensions or leaves.


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