Our company for the past 25 yrs doesn't have a written policy or company handbook. We all have been given 2 weeks vacation every year, in which most people carried over their unused vacation days into the next year. As of 2009, we are finally getting a work policy/handbook. Some department Managers told their employees to take vacation days by the end of 2008 or they'll loose them come Jan 1, 2009. Our dept manager did not tell me or anyone under him that we would loose our vacation time. He was confronted by an employee who works under him and asked if that was true. Our manager stated that he didntt think it was necessary to inform us and that we won't be paid for any used days. I know its unfair and poor management for not informing us of this, but since we have never had a written company policy/handbook is this legal to not pay us for our unused vacation days?

Michigan is not one of the states that requires employers to pay out unused vacation pay when an employee leaves employment, so I think it's unlikely that it would require the employer to pay for unused vacation in the situation you've described. You may want to check with the state department of labor for further information.