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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100011
Experience:  Lawyer
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My wife works US company and recently she has been told that

Customer Question

My wife works for a US company and recently she has been told that because her vacation banked time has exceeded what they have deemed to be allowable. (specifically 2 times her yearly allotment of 5 weeks). they will no longer be acruing vacation time on her pay until such time that she reduces her banked hours to under the 10 week allotment. She reviewed the ministry guidelines and it uses words like "an employer MUST" but when the question was posed to her organization the response was "that ‘receive vacation’ means you physically took time off work and spent it on personal pursuits. It is not the same as an accrual, and as an organization we are allowed to stop accruing time once the employee has built up a sufficient vacation bank." Is this the case?
Submitted: 1 year ago.
Category: Canada Law
Expert:  jaccorps_esq replied 1 year ago.

Thank you for trusting your question to JA today. I am a licensed attorney with over a decade of law practice and over

Unfortunately yes, that is the case. Vacation is not legally required in the U.S. and because of that employers have a great deal of discretion in how they operate that leave program.

Now, some states have done away with the "use it or lose it" concept, meaning that once you have vacation in your bank, that can't be taken away. However, even in the most employee friendly states, they all still agree that an employer can cease further accrual (called an accrual cap). While it is semantics, the courts see a legally significant difference between taking away vacation that you have in a bank and discontinuing accrual on the back end.

Fair or not, that is the current condition of the law in even the most employee favorable states.

If you have any further questions, please let me know. I invite follow up questions, so use REPLY for those. If you have no further questions then good luck going forward and please do not forget to rate my service with a top-three rating so that I receive credit for working with you today. Also, feel free to request me in the future, if you have questions concerning a different matter.

Customer: replied 1 year ago.
Now I am not sure if this changes anything but she works in Toronto Canada. My original question did not clarify this point.
Expert:  jaccorps_esq replied 1 year ago.

True, your question didn't indicate that it was a Canada law question, noting that it was a US company.

This question needs to be posted in the Canada law section. I will post it there now. Please don't respond until a Canada law section attorney responds.

Expert:  Debra replied 1 year ago.

What does her contract say about accruing vacation time?