Q. Some of our employees have accrued large amounts of vacation pay because they have worked here for many years. Can we strip this vacation pay at the end of the year?
A. Yes and no. The North Carolina Wage and Hour Act controls the payment of vacation pay. It gives employers lots of options concerning vacation pay.
Employers are free to adopt and publish a policy that strips vacation pay at the end of the year, that doesn’t permit carrying over of vacation days from year to year or that limits the number of carry-over days.
Note: If you change your vacation policy, the changes apply only from that date forward. Thus, you cannot strip past vacation pay that has accrued if you didn’t already have a published policy concerning this.
Also, remember that vacation and vacation pay are the benefits employees cherish most. Be careful when changing policies relating to time off.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/10674/can-we-take-away-accrued-vacation-leave "