Taking Away Vacation by Changing Vacation Policies Under Massachusetts Wage Act
Understanding Massachusetts Vacation Policies and the Wage ActWhen it comes to vacation time, your employer's policies are crucial, and understanding how the Massachusetts Wage Act applies to them is essential. If your employer offers vacation time, it becomes earned compensation under the Wage Act once you accrue those days. Massachusetts law is clear: if you're terminated or resign, your employer must pay you for any unused, accrued vacation days.
But what happens if your employer changes the vacation policy after you've accrued time? This often occurs when employers shift to unlimited vacation or restrict the carryover of vacation days from year to year. Vacation Accrual PoliciesMost employers outline their vacation policies in offer letters or employee handbooks. These policies typically specify the number of vacation days you receive annually, how they accrue (whether upfront or gradually), and any rules about carrying over unused days.
In the absence of a specific policy, vacation is usually considered to accrue evenly throughout the year, and it's up to the employer to set any caps or rollover rules. Eliminating Roll Over of Accrued VacationSome employers adopt a "use it or lose it" policy, meaning unused vacation doesn't carry over to the next year. While this policy is permissible, you should be given a reasonable chance to use accrued vacation days before losing them. If you've already accrued vacation before this policy change and aren't provided adequate notice, you may argue that your accrued time is a vested right that must be paid out upon employment termination.
Transitioning to an Unlimited Vacation PolicyMany companies are transitioning to unlimited vacation policies, often presented as a benefit for employees. However, it can also serve as a structure to potentially avoid paying out unused vacation upon termination. Massachusetts courts haven't provided clear guidance on this issue. The obligation to pay for unused vacation only arises upon termination, so the employer likely doesn't have to pay accrued time when the policy changes. They should retain the accrued days until your employment ends, although they may offset them against any vacation you take after the policy shift.
If you have concerns or questions about changes to your vacation policy and how they affect your rights under the Massachusetts Wage Act, consult an employment attorney for guidance. |
We're Here to Help.OR
|
Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as a Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with issues relating to wage and hour laws, including overtime pay, late or unpaid wages or commissions, employee misclassification, and retaliation against employees asserting rights under the wage and hour laws.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, including employee misclassification, late or unpaid wages or commissions, retaliation under the Wage Act, and advice to both employees and employers about wage and hour law compliance.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients assess their rights under the wage and hour laws, including employee misclassification, untimely payment of final wages, late or unpaid commissions, retaliation, and advice to small business owners about wage and hour law compliance.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients with wage and hour claims, including late or unpaid commissions, retaliation, employee misclassification, and overtime, and litigated these claims in state and federal courts. He also advises employers about employment policies and wage and hour compliance.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with multiple wage and hour issues, including retaliation, misclassification, and late or unpaid wages or commissions, and litigated these claims in state and federal courts.
How We Can Help
Our experienced team can guide you through the complexities of vacation policy changes, ensuring your rights are protected and your earned compensation is safeguarded under Massachusetts law. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
|
|
|
|
|
