Is it legal to offer extra vacation time for high-performing employees?

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 employers to pay for time not worked, such as vacation, sick leave, or holidays. These benefits are generally determined by the agreement between the employer and employee. As long as offering extra paid vacation does not violate any employment or union contract, it can be negotiated privately between the employer and employee.

Typically, accrued vacation pay is not required to be paid upon termination unless stipulated by an employment or union contract. In some instances, an employee handbook may be considered a contract. Without a formal employment contract, the payment of accrued vacation time is usually governed by the employer's 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.

FAQs

In general, an employer can terminate an employee for excessive vacation use unless there are specific protections in place, such as a union contract or company policy that limits such actions. However, if the vacation time is taken in accordance with company policy and is legally accrued, termination could be considered wrongful. It's important to review your employment agreement and company handbook for any relevant provisions.