Is it legal for an employer to revoke an already promised vacation time retroactively based on a new policy amendment?

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Is it legal for an employer to revoke an already promised vacation time retroactively based on a new policy amendment?

My girlfriend accrued vacation time based on the original vacation policy. That policy has been amended to say that employees who owe an outstanding loan-debt to the company cannot take their vacation time until said debt is paid. Is it legal for them to take away the vacation time she had already earned based on the new policy?

Asked on November 7, 2016 under Employment Labor Law, Michigan

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The fact is that whether or not vacation time is provided is up to the business; it is not legally mandated. Accordingly, since it is a discretionary benefit, a company has a great deal of say over when, how and even if it can be used. Accordingly, unless this revocation violates the terms of a union agreement/employment contract or constitutes some form of legally disctimination, it is perfectly permissable.


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