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use or lose vacation policy in Hawaii

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  • use or lose vacation policy in Hawaii


    I am a salaried employee of an environmental consulting company here in Honolulu, Hawaii. My company has a "use it or lose it" policy with respect to PTO. 12 PTO days are accrued each year and these days must be used before the employee's anniversary hire date. If the employee does not use these days prior to the hire date, they "lose" them with no pay.

    Is this legal in Hawaii? Does it matter that the company is headquartered in Phoenix, AZ? I live and work here in Hawaii full time (eg pay HI taxes).


  • #2

    No matter where the HQ is located in the states, your employment is governed by federal and Hawaiian laws.

    I looked high and low through Hawaii statutes and could not find where the state mandates payment of vacation OTHER than there is a reference saying that an employee must file a claim for unpaid wages, including vacation, within one year. Therefore, I do believe that Hawaii does not permit use it or lose it vacation.

    Check with the state, in any case, for a definitive answer.
    Lillian Connell

    Forum Moderator