Submitted by JamesF75 on Wed, 07/21/2010 - 08:48
I just checked in my employee handbook and, sure enough, my friend in the next office is right. It says the company has a use it or lose it policy re vacation time so that once I earn three weeks, I can't get any more until I use some of the vacation time. So is that legal in Massachusetts? Thanks.
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Editor's Response
Well . . . I think the term 'use it or lose it' is not really accurate. As you may know, under the Massachusetts Wage Act, accrued vacation time must be treated like any other form of wages, and terminated employees in MA must be paid their accrued vacation time. However, in an advisory opinion from 1999, the Attorney General of Massachusetts did give a thumbs up to polices that effectively put a cap on the number of hours of vacation employees can accrue, as long as that policy was made known to the employee in advance, just as you were informed about your companies policy by the employee handbook. So, as you accurately explained in your question, your company can cap your vacation time and, effectively, require you to take vacation before you can accrue additional time. Hope that helps.