On Monday we discussed the basic framework for providing employees with days off during recognized religious holidays.  A related issue commonly presented during the holiday season is whether employees must be paid for their time off.

The holidays are a joyous time of year, but many employers face the season with a certain sense of trepidation as their employees inevitably request time off work.  As the holiday season kicks into full gear, now is a good time for employers to refresh themselves on basic guidelines for granting and denying employees’ vacation requests.

Contrary to what many employees think, paid time off (“PTO”) is not a protected right. Instead, it is a matter of agreement between an employer and employee. There are times when employees may prefer to take unpaid leave so that they can accrue their PTO, but employers can determine whether this practice is permissible. It is lawful for employers to require that employees exhaust unused PTO time before taking unpaid time away from work.