North Carolina Wage and Hour Law - Vacation

Document created by 1050210 on Nov 10, 2014
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Published Date: 03/31/2014


John; Gupton

By John Gupton


Vacation is a wage benefit that may or may not be provided at the discretion of the employer. However, if an employer wants to attract and retain quality employees, it needs to provide a vacation (or other paid time off) benefit for its employees.


Under North Carolina wage and hour law (N.C.G.S. § 95-25.12 and N.C.G.S. § 95-25.13), if the employer does promise vacation pay or vacation time off with pay, then the employer must have a written vacation policy that clearly explains how the vacation is earned and how it can be taken. Also, the law (N.C.G.S. § 95-25.7) provides that any earned vacation must be paid at termination unless the employer has a written forfeiture clause that clearly explains how the earned vacation can be taken away. For more information on this issue, go to