While there isn’t a federal law in the United States requiring employers to provide paid vacation days, employers in Arizona may opt to include paid vacation days in the employment benefits package.
Accrual and Use of Vacation Days
A number of companies in Arizona could use an accrual system for vacation days, which means that workers accumulate a set amount of earned time each hour worked. An employee handbook or contract will frequently contain information on how vacation time is accumulated and when it may be utilized, if the company offers paid vacations.
Payout at Termination
In Arizona, earned vacation time is regarded as a type of earned compensation, therefore if an employee leaves the firm (either by resignation or termination), the employer is normally obligated to pay out any unused vacation time that has accrued. This depends depend on the company’s policy, but generally speaking, if an employer has a policy of compensating employees for unused vacations, they must follow this policy when an employee is terminated.
Use-It-Or-Lose-It Policies
Certain organizations may have a “use-it-or-lose-it” policy. Employees who don’t use their vacations may be forfeited at the end of the year. This practice may be considered illegal in some countries. Employers who practice this policy rob workers of their rightful earnings. There is an instance when a use-it-or-lose-it regulation may be acceptable in Arizona. It’s when workers were given a fair chance to use their earned time before it was too late.
Change in Policy
Employer policy regarding vacations may change. However, the number of vacation days that an employee has already accumulated should not be taken away.
Employees must be aware of their legal obligations and the specific vacation policies of their employers. Consult with a labor lawyer or the Arizona Department of Labor if you feel your rights have been infringed. On the other hand, employers must make sure that their rules are in line with applicable state legislation. Company policies should also be written plainly.
