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Can an employer take unused earned vacation time down to a zero balance if not used?

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Junior Member
What is the name of your state? Arizona

My husband started working for company "A" about 4 years ago. He is very busy and hardly has the time for vacation. He had the maximum vacation hours accrued, no problem here. The problem is, his company was sold to Company "B" who states that they must use all unused earned vacation by June 1st, any balance on the books at that point will be taken down to a zero balance. The accrual process then kicks in at earned accruals per pay check. They then have to use any earned vacation accruals by 12/01 or it will be taken down to zero. My husband is a Systems Engineer, he practically works 24/7, with out any time to take off and they are continually adding new projects to his list.
1. Is there any law that prevents them from taking vacation accruals down to zero, AFTER THEY ARE EARNED every 6months.
I understand there is NO law that says a company has to even offer vacation pay, however......
2. Once vacation pay is offered and earned, how can they take it to a zero balance especially when work load prevents you from taking it?


I'm a Northern Girl
1.) In your state, no, there is no law prohibiting such a practice. Arizona law states that company policy determines whether or not such benefits as vacation time are payable.

2.) They can take it to a zero balance because no law says they can't.


Junior Member
So the "use it or loose it" rule applies even if work load prevents you from using it. So Sad. Wish I knew more about how to fight this and change that law in Arizona. Are there actually any state or states that protect you from loosing earned vacation accruals?
In this situation, you loose accruals on 6/1 and 12/1 every year.
Most vacations are taken when children are out of school. If you zero balance on 6/1 ... how can you take any time off during the summer... you have NO accruals? Guess they force you to take your children out of school.
Both these dates are either before summer vacation or before Christmas holidays.
Thanks for this information. Not what I wanted to hear, but the research was leading me no where on the internet.
Is there a website that I can go to, that actually quotes this information?


I'm a Northern Girl
There are a number of states that prohibit use it or lose it plans, mine among them. However, AZ does not happen to be one of them.

I found the information on the Arizona DOL website.

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