Paid Vacation Policy Legal Question

[MiKe_2004]

State: NJ

A few months ago, I decided to use some of my vacation days before the end of the year. My company has a "use it or lose it" policy with regard to our 3 weeks of paid vacation per year. I gave them 2 months advance notice, and my 2 week vacation time request was approved in writing. A few days before I was scheduled to start my vacation, I was informed that the company was too busy with year end work to allow me to use my vacation days. I was required to attend work normally for the first week of my "vacation", then they offered to let me work at home for the second week, but assigned me enough work with a week end deadline to take 45-55 hours to complete. I expressed my discontent with this last minute cancellation of my vacation, and proposed that I should at least have the days extended until next year or they should be paid out. They refused both suggestions claiming "they have a use it or lose it policy, and they don't pay out unused vacation days".

The three weeks of paid vacation was one of the advertised benefits that made me decide to take this job, and there must be some law against falsely stating benefits in an employment contract.

Any advice would be appreciated.

Thanks,
Mike

[cbg]

With all due respect, I don't see any misrepresentation here. You had all year to use the vacation time; it isn't the fault of the employer that you waited until the end of the year to use it. I realize you gave them considerable notice, but the law does NOT prohibit them from withdrawing approval if business conditions make it necessary, and depending on the business and the position that is often the case this time of year.

Use it or lose it policies are legal in NJ. While they didn't handle it the way I would have, and I agree you got a bum deal, they were under no legal obligation to let you take the time when it was inconvenient for them or to extend the length of time you could use this year's vacation.

While it may seem unfair, and may even be unfair, it is not illegal and I see no legal recourse for you.

[srmmay]

Originally Posted by cbg

With all due respect, I don't see any misrepresentation here. You had all year to use the vacation time; it isn't the fault of the employer that you waited until the end of the year to use it. I realize you gave them considerable notice, but the law does NOT prohibit them from withdrawing approval if business conditions make it necessary, and depending on the business and the position that is often the case this time of year.

Use it or lose it policies are legal in NJ. While they didn't handle it the way I would have, and I agree you got a bum deal, they were under no legal obligation to let you take the time when it was inconvenient for them or to extend the length of time you could use this year's vacation.

While it may seem unfair, and may even be unfair, it is not illegal and I see no legal recourse for you.

REPLY FROM INDIANA

I'm no lawyer, and so I can't speak to the legalities of this matter, but I would like to make a point about professional ethics. Although companies do not have to offer vacation time at all, when they do offer such fringe benefits, they are also responsible for creating the terms that go with it (such as use it or lose it) and communicating those terms clearly to employees. In the case in question, the person applied for the time off well in advance--2 months in advance. Thus, the company had every obligation to do what they could to allow the employee to take his vacation---3 weeks paid vacation was part of what the company offered for the employee's services, along with salary.

While the company may have the legal right to make the employee forego his vacation, their unwillingness to let him roll those 2 weeks over into the next year is unconscionable. There is such a thing as "legalized stealing", and as far as I am concerned, this type of behavior falls into such a category. If employers want employees with integrity and high ethics, then they must display such behavior toward their employees. Loyalty is a two-way street, and any company so short-sighted as to treat an employee in this way is behaving foolishly, at best.

Furthermore, you make the point about the company having no legal obligation in this case. Why is that so? They don't have to offer the benefit, but since they did, they should be forced to honor it. Although the person who lost his vacation was not happy about it, I hear a reasonable request---"At least let me take those 2 weeks of lost vacation into the next year." A good employer who valued and appreciated a good employee would be making such an offer before it was even asked. The employer has nothing to lose and everything to gain by making an exception to their own policy. It shows that they are fair-minded and reasonable and value their employees.

Another thing, you make the point, "...I don't see any misrepresentation here. You had all year to use the vacation time; it isn't the fault of the employer that you waited until the end of the year to use it." Well, what is wrong with the employee wanting to use his vacation at the end of the year---shouldn't it be his option as to when he takes his vacation? Granted, the business case decreed he was needed, and so he rose to that need. Why not reward him for his sacrifice?

Many people like to take extra vacation around the holidays, and so perhaps there is a case to be made for poor planning on the employer's part. They know the employee has requested the last two weeks of the year off. They know that they have a "use it or lose it" policy. If they see things shaping up badly toward the end of the year, they should not have approved the employee's vacation request.

Does the employer bear no obligation for poor planning? If not, then at the very least, should not their written policies state that if you plan vacation at the end of the year and business circumstances preclude you from taking it, you run the risk of losing those days? Although personally, I think this would be a tacky approach, at least under those circumstances, you could claim that the employer did, in fact, give full disclosure. Since this was not done, I disagree with your stance that the employer did not engage in misrepresentation. I believe that they most certainly they did. They "approved" the vacation request---they should at least let the person roll it over into the next year.

I have seen many instances where poor management has brought considerable misery to excellent workers who have saved the manager's butt by being worked half to death (with no pay for all the overtime) at the last minute to meet an unrealistic deadline. In such cases, workers had been telling the managers from the beginning that the timelines were unrealistic. This should not be---that workers are made to be lackeys for the mistakes of management. At the very least, they should receive some monetary compensation.

The lesson I have learned about such situations is this: that companies who renege on promised benefits are untrustworthy. My advice would be to cut your losses, and start looking for a better company. They are out there---you just have to find them. Believe me, they are worth the effort.

[cbg]

Indianna:

You seem to be taking the position that because I said the employer did nothing illegal, that means I think the employer did right.

Well, guess what. I don't. I happen to agree with just about everything you said.

But that still doesn't make what they did illegal, and doesn't give the original poster any legal recourse.

[MiKe_2004]

Thanks for the info - I understand that an employer can cancel vacation time if business circumstances require, but this seems more like a breach of contact issue to me.

First of all, I did not wait until the last minute to request vacation time, they knew that I wanted to plan a vacation around the holidays for several months. I then gave them 2 months official notice when I had worked out the exact dates, and they were even willing to give me approval in writing, signed by two managers and myself.

When I accepted this job, the vacation time was clearly offered as part of the compensation package. If it is perfectly legal for them to disregard the terms of this contract, what's to keep them from making other changes, such as reducing my salary without informing me or canceling additional benefits?

Is it legal for a company to sign a "contract" consenting to a vacation leave, then totally ignore their part of the deal? I'm sure if I violated any one of the secrecy agreements in the fine print of my 28 page employment contract, they would not hesitate for a second to take legal action, yet they feel they have the right to violate the terms in large print on the first page.

- Mike - State:NJ

[cbg]

At no time in your initial post do you indicate that you have an employment contract which guarantees you this benefit. We can't answer your question accurately if you don't supply all the information.

If you believe your contract has been violated, show it to a local attorney. Without having read the ENTIRE contract, no one here can respond.