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ajw20000
05-07-2009, 05:32 PM
I have worked for a company for over 10 years. During the 10 years they had a policy in the handbook that stated that an employee can earn up to 42 vaction days and carry them into the next year. Also, when the employee leaves the company they will pay for any unused vacation days.
Now that times are slower and they are worried about business and money they just changed the policy to state that you can now only have 10 vaction days. If you have any more at the end of the year you will lose them.
Is this policy legal? Dont they have to payout the vacation days earned on the old policy or can they just take the days away with the change of policy? Thanks for your input.

Pattymd
05-07-2009, 05:50 PM
Yes, it is legal under PA law. State law does not prohibit use-it-or-lose-it vacation policies. In regards to payout at termination, PA law requires only that the employer follow their own policy at the time of the termination.

cbg
05-07-2009, 05:51 PM
Yes, the policy is legal. PA does not prohibit use it or lose it plans; they only require that the company follow the policy THAT IS IN PLACE AT THE TIME. If they change the policy, and you are notified of the change, then that's the only policy they have to follow. Vacation days are not considered wages in PA.

ajw20000
05-07-2009, 06:15 PM
I was thinking that the only PA law is that the when the company makes a policy they must follow it. So if you earned days under one policy the company only needs to change that policy and I lose my days earned under the first?

Betty3
05-07-2009, 06:38 PM
So if you earned days under one policy the company only needs to change that policy and I lose my days earned under the first?

That's correct. It is not illegal for your employer to change their policy & then follow the new one as long as you are notified of the change.

ajw20000
05-07-2009, 06:39 PM
Thanks for your help

Betty3
05-07-2009, 06:42 PM
You're welcome. Sorry though that it's not what you wanted to hear.

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