Although there is no legal requirement for businesses to offer paid or unpaid vacation time to employees, it is common knowledge and good practice for employees to occasionally take time off in order to return to work more productive and engaged. If you decide to offer vacation time to your employees, a well written vacation policy will help to ensure that it works well for both your small business and your employees. Here are some important tips that I think you should consider.

Side Note: There is no legal requirement for employers to offer paid or unpaid vacation (though some states require paid family, parental, or sick leave for certain employees), but when paid vacation is offered, some states have certain statutes regulating it; for example, whether an employer can establish a “use-it-or-lose-it” policy, or whether an employer must provide compensation for unused vacation time upon end of employment. As always, check with a well-qualified business law attorney, to make sure your policy complies with these legal requirements.

Side Note: A company may choose to offer unlimited paid time off. This simply means that the company does not put a cap on how many days a year their employees can take off. The key is to state that it must not interfere with their quality of work. This is a more flexible option to offer your employees, and is a nice benefit that can often improve the overall work environment. 

Give Us a Call

If you are considering offering vacation time to your employees, Koukol Johnson & Schmit, LLC can help you draft a clear vacation policy that will accomplish your goals and comply with the law, as well as provide answers to any other benefit-related questions you may have. Call us at (402) 934-9499 or click here to schedule a consultation with our Business and Employment Attorney Angela Schmit. Our team is ready to provide sound advice and legal solutions.