Employment Law Questions? Ask an Employment Lawyer.
Yes, that is legal. Paid vacation is not legally mandated. Rather it is a matter of contract between employer and employee. As such, the employer can add stipulations to the cashing out of vacation upon termination. Further, some states do have laws mandating payout of accrued vacation, but Idaho is not such a state that has passed a law like this; see Illinois for example where all vacation accrued must be paid at termination regardless of cause.
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