Vacation Pay

An Employer must pay out vested vacation pay at the final rate of pay, in accordance with the employer’s vacation policies. Vacation pay generally cannot be forfeited just because it has not been used within a specific amount of time. An employer may place a limitation on the total amount of vacation time to which an employee may originally acquire. An employer may also be subject to different rules of law if they participate in a federally funded Employee Retirement Income Security Act of 1974 (ERISA) vacation plan.