California court declares “use it or lose it” vacation policy illegal
http://www.sandiegolawfirm.com/california-court-declares-use-it-or-lose-it-vacation-policy-illegal/
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Dear U.S. Employee: We are changing the vacation plan for U.S. employees OUTSIDE California, Nebraska and Montana to what is often referred to as a “use it or lose it” plan, increasingly adopted for economic reasons by organizations across the country. This move is intended not only to help the company streamline expenses but also to motivate employees to take their maximum possible vacation time each year in order to maintain healthy, balanced lives. Here’s how your new vacation plan will work. To transition to the new plan, on March 29 your unused vacation balance will be cleared and on March 30 you will be eligible to use 100 percent of your vacation hours for calendar year 2014, minus any negative hour balances. These hours should be used by January 3, 2015, which is the last day of the pay period for the calendar year, or you will lose them.