Can an Employer Take Away Vacation Time in Maine?

By Alice Nichols

Vacation time is a crucial aspect of any employee’s work-life balance. It allows them to take a break from work, rejuvenate and come back with a fresh mindset.

However, the question of whether an employer can take away vacation time is a contentious issue. In Maine, the law provides some guidance on this issue.

What does Maine law say about vacation time?

Maine is one of the few states that do not have a specific law mandating employers to offer vacation time to their employees. However, if an employer does offer vacation time, they are bound by certain rules.

The use-it-or-lose-it policy

Under Maine law, employers are allowed to implement a “use-it-or-lose-it” policy for vacation time. This means that if an employee does not use their allotted vacation time within the specified period, it may be forfeited. However, this policy must be clearly communicated to employees in writing in advance.

Can an employer take away vacation time already earned by an employee?

In Maine, once an employee earns their vacation time, it becomes their property. Employers cannot take away or reduce earned vacation time unless there is a valid reason such as misconduct or violation of company policies.

What happens to unused vacation time when an employee leaves their job?

When an employee leaves their job in Maine, they are entitled to receive payment for any unused vacation days unless there is a written agreement or company policy stating otherwise.

  • If there is no written agreement or company policy stating otherwise:
    • If the employee has earned less than one year of service: There is no entitlement for payment of unused accrued leave.
    • If the employee has earned one year but less than two years of service: The employee must receive payment for at least one week of unused accrued leave.
    • If the employee has earned two or more years of service: The employee must receive payment for at least two weeks of unused accrued leave.
  • If there is a written agreement or company policy stating otherwise:
    • The agreement or policy should be followed.

What should an employee do if their employer takes away their vacation time?

If an employer takes away an employee’s vacation time without a valid reason, the employee may file a complaint with the Maine Department of Labor. The department will investigate the issue and take appropriate action.

Conclusion

In Maine, employers are allowed to implement a “use-it-or-lose-it” policy for vacation time. However, they cannot take away already earned vacation time unless there is a valid reason.

When an employee leaves their job, they are entitled to receive payment for any unused vacation days. If an employer takes away an employee’s vacation time without a valid reason, the employee may file a complaint with the Maine Department of Labor.