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Q.My employer’s vacation policy provides that once an employee earns 200 hours of vacation, no more vacation may be earned (accrued) until the vacation balance drops below 200 hours. Is this legal?
A.Yes. Unlike a "use it or lose it" policy which is illegal, a vacation plan may place a "cap" or "ceiling" on the number of hours an employee can accrue. Where a "use it or lose it" policy results in the forfeiture of accrued vacation pay and is therefore illegal, in this case the employer is simply putting a limit on the amount of vacation time the employee can accrue. Once the employee has accrued a certain amount of vacation time (in this example 200 hours), the employee must actually take some vacation days before any more vacation time will accrue.
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