Is it legal for an employer to pro-rate accrued vaction up to the time of the sale of the company?

UPDATED: Sep 30, 2022

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Is it legal for an employer to pro-rate accrued vaction up to the time of the sale of the company?

The company is under contract to be sold. The current owner is pro-rating vacation on a monthly basis until the company changes hands. Each employee is only allowed to accrue 1.5 days a month until the sale.

Asked on August 14, 2016 under Employment Labor Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

That is perfectl legal--and not uncommon.  The law does not specificy any particular way or timeline for accruing vacation: accruing over time is as common (more or less) as getting all your vacation time on Jan. 1 of the new year. Every company I have worked for, for example, accrued vacation time monthly.

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