Which States Prohibit Use It or Lose It Vacation Policies?

By Anna Duncan

When it comes to taking time off from work, it’s important to know your rights as an employee. One common policy that can affect your vacation time is the “use it or lose it” policy.

This policy requires employees to use their allotted vacation time by a certain date or else forfeit it. However, not all states allow this type of policy. In fact, some states prohibit the use of “use it or lose it” vacation policies altogether.

What is a “use it or lose it” vacation policy?
A “use it or lose it” vacation policy is a common practice among employers in which employees are required to use their accrued vacation time by a certain date or risk losing that time altogether. This means that if you don’t take your vacation days before the deadline, you won’t be able to carry them over to the next year or receive compensation for the unused time.

While this policy may seem unfair, employers often implement it as a way to ensure that their employees are taking breaks from work and not accumulating too much unused time.

Which states prohibit “use it or lose it” vacation policies?
If you live in one of these seven states, you’re in luck – employers are prohibited from enforcing “use it or lose it” vacation policies:

  • California: Employers cannot have a “use-it-or-lose-it” policy for accrued paid-time-off (PTO).
  • Illinois: Employers cannot have a forfeiture provision unless they provide something of equal value instead.
  • Louisiana: Employers cannot have policies that require employees to forfeit earned leave.
  • Maine: Employers cannot have policies that require employees to forfeit earned leave.
  • Nebraska: Employers cannot have policies that require employees to forfeit earned leave.
  • New York: Employers cannot have policies that require employees to forfeit earned leave.
  • Rhode Island: Employers cannot have policies that require employees to forfeit earned leave.

If you live in a state other than the ones listed above, it’s important to check with your employer about their vacation policy. While “use it or lose it” policies are legal in many states, some employers may choose to offer more flexible options for unused vacation time.

What are my options if my employer has a “use it or lose it” vacation policy?
If you live in a state where “use it or lose it” policies are legal and your employer enforces this type of policy, there are a few things you can do:

  • Talk to your employer: If you’re concerned about losing your unused vacation time, talk to your employer about potentially carrying over some of the time into the next year or receiving compensation for unused days.
  • Use your vacation time: The easiest way to avoid losing your vacation time is by using it before the deadline. Make sure to plan ahead and take breaks from work throughout the year.
  • Get legal advice: If you believe that your employer is violating labor laws by enforcing a “use-it-or-lose-it” policy, consider seeking legal advice from an employment lawyer.

In conclusion, while “use it or lose it” vacation policies are common among employers, not all states allow them. If you’re concerned about losing your unused vacation time, make sure to check with your employer about their policy and explore different options for carrying over or receiving compensation for unused days.