Vacation Pay Law and Legal Definition

There are no U.S. laws that require employers to offer vacation pay. Whether an employer offers vacation time off with or without pay is strictly voluntary for employers, but many offer it as a benefit to attract and keep employees. If employers do offer vacation pay, the terms regarding an employee's rights to it is governed by the individual employer's policies or employment contracts.

Some states have laws requiring an employer to offer any accrued vacation pay when employment ends. However, failure to follow an employer's guidelines regarding termination of employment, such as giving notice, may deny the employee's right to accrued vacation pay. In states where accrued vacation pay isn't mandated, employers may still offer it voluntarily.