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The short answer is maybe. Surrendering accrued and unused vacation time to an employee who separates from your company, whether by choice or not, isn't a federal requirement, so there's no federal law that your company has to comply with.
Employers are not obligated to give their workers paid or unpaid time off under federal law. Also, there are no specific Florida vacation time laws that require vacation pay either. That being said when employers do decide to offer vacation pay, these benefits are considered wages under Florida vacation time laws.
Are There Florida Laws About Paid Time Off? There are no state laws in Florida that apply to mandatory sick days, vacation time, or paid time off. Yet even if there is no state law mandating these practices, many employers offer these benefits to their employees.
The short answer isit depends. There is no federal or state law in Florida requiring private employers to pay out an employee's accrued vacation or other paid time off (PTO) at the time of termination.
Paid time off (PTO) is a type of company policy that combines vacation, sick and personal time for employees to use as paid time off from work. In most cases, PTO is accrued over a period of time and is credited to an employee's bank of hours each pay period.
Under California law, earned vacation time is considered wages, and vacation time is earned, or vests, as labor is performed.
Florida has no laws at all that address payout of earned vacation time when an employee leaves. In these states, "use it or lose it" policies are not prohibited since there is no law on the subject. Therefore, they can be used to prevent a payout at termination or a rollover of vacation time.
There is no federal or state law in Florida requiring private employers to pay out an employee's accrued vacation or other paid time off (PTO) at the time of termination.
Most employers and their employees assume that the employees will be taxed on wages and PTO only when the employee actually receives the wages or takes the PTO. Unfortunately this is not always the case.