Is Use It or Lose It Vacation Legal in NY?

By Anna Duncan

Have you ever heard of the term “use it or lose it” when it comes to vacation time? This policy is common among employers where employees are required to use their vacation time within a certain period, usually a year, or they will lose it.

But is this policy legal in New York? Let’s find out.

What is the Law on Vacation Time in New York?

In New York, employers are not required by law to provide paid vacation time to their employees. However, if an employer does offer paid vacation time as part of their employee benefits package, they must abide by certain laws.

One of these laws is that earned vacation time is considered wages and therefore cannot be taken away from an employee once it has been earned. This means that if an employee has accrued vacation time, the employer cannot take it away without compensating the employee.

What is the “Use It or Lose It” Policy?

The “use it or lose it” policy is when an employer requires employees to use their accrued vacation time by a certain date or lose it altogether. This policy can be seen as unfair as employees may not be able to take their vacation time due to work demands or personal reasons.

Is the “Use It or Lose It” Policy Legal in New York?

The short answer is no. In New York, employers cannot implement a “use it or lose it” policy for earned vacation time. However, there are some exceptions.

If an employer has clearly communicated and documented their policy regarding the accrual and use of vacation time and provides reasonable notice to their employees before any forfeitures occur, then they may be able to enforce a “use it or lose it” policy.

Additionally, if an employee leaves their job voluntarily or involuntarily before using all of their accrued vacation time, then the employer may be able to implement a “use it or lose it” policy.

What Should You Do if You Feel Your Rights Have Been Violated?

If you feel that your employer has violated your rights regarding vacation time, you should speak to an experienced employment lawyer. They can help you understand your legal options and assist you in filing a complaint with the appropriate agency.

In conclusion, the “use it or lose it” policy is not legal in New York for earned vacation time. However, there are some exceptions where employers may be able to enforce this policy. If you feel that your rights have been violated, seek legal advice to protect yourself and your rights as an employee.