Full question:
Is it illegal to offer extra paid vacation time for an above average worker at the time of their performance review?
- Category: Employment
- Subcategory: Benefits
- Date:
- State: California
Answer:
The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or holidays (federal or otherwise). These benefits are a matter of agreement between an employer and an employee (or the employee's representative). As long as the pay is not in violation of an employment or union contract, a bonus in the form of paid vacation is a matter of private negotiation between the employer and employee.
Accrued vacation pay is generally not required to be paid on termination of employment unless required by an employment or union contract. In some cases, an employee handbook is deemed a contract. Without an employment contract, the payment of accrued vacation time benefits is typically a matter of employer policy.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
