What are the laws governing vacation pay?

In Maryland, vacation pay is governed by a few different laws. The Maryland Wage and Hour Law states that all employees who have worked at least 1,000 hours in a 12-month period are eligible for at least one week of vacation pay. This vacation pay must be paid at the same rate of pay as the employee typically receives, and employees cannot be required to work while on vacation. Additionally, employers must pay out any earned vacation pay, even if the employee is terminated before their vacation. Vacation time cannot be taken away as a punishment, and employers must adhere to any vacation policies stated in their employee handbook or collective bargaining agreements. Employers are not required to pay out unused vacation time upon an employee’s termination, but may do so if it is part of their policy. An example of an employer providing vacation pay upon termination is a law passed in 2018, the Maryland Healthy Working Families Act (HWFA). This law requires employers with 15 or more employees to provide 40 hours of sick and safe leave, which includes any unused vacation time. Although vacation time is not required by law in Maryland, the state provides a few protections for vacation pay. Employers must abide by their own policies, as well as adhere to the laws put in place by the state. This ensures that employees are able to take the vacation time necessary to rest and relax without penalty.

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What are the laws governing vacation pay?

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