Vacation Pay

As per federal and state law, it is not mandatory for an employer to pay employees for vacations or holidays. If the employee receives vacation pay, it is because of the company's policy and not due to a provision in the law. Most employers give their employees vacation pay to keep them satisfied. As vacation benefits are optional, so is the policy of how and when they accrue.

The terms and conditions of vacation pay depend solely on the employer's policy and terms. They may extend the benefit to part time employees or deny it. Employers are also free to set limits on how much paid time off employees may save, before it must be taken or lost. However, if the employer is offering vacation pay, it has to be offered to all the employees on the same conditions and terms, and no employee should be discriminated against because of sex, religion, age, race, disability, etc.