Vacation benefits
Watch out for accrual pitfalls
It is not uncommon for employers to implement paid vacation policies in which the employee receives a lump sum of vacation time upon reaching a certain length of service or anniversary date, rather than accruing the vacation over time. For example, the employee receives zero paid vacation time in their vacation bank during their first year of employment, but at their one-year anniversary date, they are suddenly credited with one week of paid vacation. This practice is not compliant and can expose an employer to substantial liability.
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