I have been with this company for 5 years and got laid off in march due to lack of work. Was called back in July. Just to find out that if you are laid off for 4 months they erase your time and make u start over i dont see how this is leagal. I had aquired 2 weeks pd. vacation which they took away from me. Now i have to work a year in order to get 1 weeks pd. vacation. Can anyone please tell me if this is legal.

Generally speaking it is legal.

What were the conditions of your lay-off?
Were you employed under an enforceable employment contract or collective bargaining agreement? If yes, what were the terms? Did it address recall from a lay-off?

Since no law specifically addresses vacation (or PTO), a company is free to set policy as they see fit.

I understand that you think this is unfair. I wish I could give you another answer. Sorry!

Barring a bona fide contract that says otherwise, this is legal. The law does not require that you receive vacation at all; it's entirely up to the employer whether you receive it and if so, when and how much. Alabama is not one of the few states that considers vacation to be wages; it's legal for them to have a policy in which you lose vacation already earned.

To be honest, I'm surprised that they bridge service if you've been gone less than 4 months. I've worked for companies that would start you over on all benefits if you were gone for one day.