What rules apply in situations where employers have paid vacation policies?
Paid vacation policies are generally based on the hours worked and vacation days accrue as they are earned. Such vacation days cannot be forfeited once earned (use it or lose it plans are not allowed), even when the employee terminates his employment. Employee must be paid for all accrued and unused vacation pay at his final rate of pay at the time of his termination. Employer can place a reasonable cap on the number of accruable vacation benefits, however employer must give the employee a reasonable amount of notice to take the vacation time before losing it. Example: Employer can cap accrued vacation hours at 250 hours and prevent any more accrual until the employees vacation time balances drops down to 200 hours. Employer has the right to pay his employee for all accrued and unused vacation time. If an employer gives the employee an advance on his vacation time (e.g. letting him take his vacation before the amount of time has actually accrued), and the employee is terminated before
