Employees subject to a "use it or lose it" vacation pay policy are prohibited from carrying over vacation days from one year to the next.
Many companies have these policies in place yet many employees of these companies don't take their full allotted vacation and so in effect are working more hours for less pay than they bargained for in the first place. The net result is that employees who do not use the full amount of their allotted paid vacation are deprived of earned wages.
While there is no federal law prohibiting employers from following a "use it or lose it" policy, state laws address when and how such policies may be enforced. For example, in California, "use it or lose it" policies are unlawful. "Use it or lose it" policies are lawful in other states only if the employer implements and enforces the policies in a specific manner.
If you have been deprived of wages due to a "use it or lose it" policy and would like to learn if there is a remedy available to recover the wages, call Alan Lescht and Associates, P.C., for a free phone consultation.