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Laws in PA for vacation? Pennsylvania

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  • Laws in PA for vacation? Pennsylvania

    A couple of years ago the company I work for changed our vacation policy. Prior to this change our vacation that we took in a given year was earned by working the year before. In other words, we had to work a full year to be eligible for vacation time when we were first hired. People who retired were able to work a month or two of a new year, take their full amount of vacation for that year, and then retire. The company changed the vacation policy so that those who want to retire now cannot do that. In fact if a person takes more than the company says they earned that particular year, they must pay it back before they retire. New employees must still work a year before they can get vacation. By working a full year we are earning our vacation for the following year. Seems like we earned it, but cannot take it all unless we work the full year. If we want to sell vacation back, we must wait until November and December. In other words you need to work almost the whole year to be able to get your full vacation that you already worked for the year before. To me, this seems like the company took a year's vacation that I earned by working the year before.

    Can they legally do this?

  • #2
    In PA, vacation is not considered wages and use it or lose it policies ARE legal. Essentially, the only PA law regarding vacation is that the employer is required to follow their own policy. They can make the policy say pretty much anything they want it to as long as discrimination laws are not violated, and as long as they follow that policy they're in the clear, legally.

    They have the legal right to change the policy going forward, and once again as long as they follow the new policy and the new policy doesn't violate any discrimination laws, they're once again legally okay.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Just to be clear, vacation is not considered due wages in PA. At what point the payment is made, IRS very much considers the payment to be wages. IRS considers all payments to be wages unless IRS says otherwise.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        Thanks for the clarification. Bad wording on my part.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Thank you both for the explanation. I had written to the National Labor Relations Board and all the person said was, they don't cover issues about employee benefits such as vacation policy. I wrote to the Department of Labor and the person said to contact my state Department of Labor. I probably did better finding and posting on this forum.

          Basically my employer legally stole my earned vacation They took a lot of other stuff this past year due to the economy that we will never see again even when better times return. CORPORATE GREED !!

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