Are your vacation policies protecting your business—or putting it at risk? In less than 10 minutes, get clear answers to the most common legal and HR questions business owners face.
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Key Notes
- There’s no federal law mandating vacation pay, but some states treat it as earned compensation.
- “Use it or lose it” policies may be illegal in certain states—check your local laws.
- Blackout dates and vacation caps are allowed if clearly communicated.
- Vacation time can be offered selectively, but must be applied fairly and without discrimination.
- State laws may require you to pay out unused vacation time, which is especially important for remote teams.
- Document your vacation policies, communicate them clearly, and stay compliant to avoid legal trouble.