Connecticut Employment Law Blog Insight on Labor & Employment Developments for Connecticut Businesses

Vacations: Necessary for the Soul, but Not Required By Law

Posted in Human Resources (HR) Compliance, Laws and Regulations, Wage & Hour

Like many of you, I long for vacations.  I like to plan them out in advance and then spend the intervening weeks and months plotting and scheming.

What restaurants and new foods should we try? What attractions should we try to visit? And while that private tour my Facebook friend recommended sounds neat and all, what can we really afford to do?

Having just returned from a trip overseas, I can attest that vacations are good for the soul too.  They provide time with friends and family and a much needed perspective.  There is simply more to life than the constant barrage of news that seems to infiltrate our lives nowadays.

But where do vacations fit in the legal schemes employers set up in Connecticut?

Well, for one thing, vacations are not mandated by any state or federal law.  Employers are free to decide whether or not they want to give their employees any vacation days.  But many employers recognize that offering vacation days makes jobs more attractive and also leads to happier employees in the long run too.

That said, Connecticut law basically leaves it to the employers to set up policies — and then requires them to follow them.  The point this truly becomes an issue occurs when an employee leaves employment and still has vacation days that have accrued.

The key law here is Conn. Gen. Stat. Sec. 31-76k, which states:

If an employer policy or collective bargaining agreement provides for the payment of accrued fringe benefits upon termination, including but not limited to paid vacations, holidays, sick days and earned leave, and an employee is terminated without having received such accrued fringe benefits, such employee shall be compensated for such accrued fringe benefits exclusive of normal pension benefits in the form of wages in accordance with such agreement or policy but in no case less than the earned average rate for the accrual period pursuant to sections 31-71a to 31-71i, inclusive.

In plain English, the law dictates that employers follow their policies and practices.  Don’t want to pay your employees accrued vacation time upon termination? The law says that is ok, but only if your policies say that in advance.

As you craft your vacation policies, here are some other questions for an employer to consider:

  • Do your policies require employees to seek time off in advance?
  • Do you require employees to coordinate with other vacation schedules?
  • Do you have a “use it or lose it” policy on vacations, where employees are required to use vacation time by the end of the year, or do you allow for some carryover? If so, how much?
  • Do you have employees vacation time on a pro-rata basis? In other words, do employees get a day vacation for each month during the year worked?
  • Do your policies dictate that if the employee does take vacation time that has not accrued, what the penalties are?

Vacations are great. Encourage your employees to use them.  Just make sure your company’s policies are clear enough that you won’t be dealing with headaches later on.