What are the rules for vacation pay?
In Pennsylvania, employers must follow the wage and hour laws regarding vacations. This means that employers must provide vacation pay to all employees, even if they are part-time or seasonal. All vacation pay must meet the minimum threshold amount based on a 40-hour work week. Salaried employees must be paid at least one week of vacation pay, while hourly employees must be paid at least one and a half weeks of vacation pay. Additional vacation pay will be given for longer lengths of employment. Employers must also provide vacation time as well as vacation pay. Generally, employers must give vacation time at the rate of one week for every 52 weeks of employment, although the amount of time may vary from employer to employer. Vacation time must be taken in the same calendar year as it is earned and must be taken at the employer’s discretion. Unused vacation time cannot be rolled over to the next year, and accrued vacation time must be paid out at termination. Employers must also provide a written policy outlining the details of vacation pay and vacation time. This policy must be provided to all employees when they are hired and must include specific details regarding both vacation pay and vacation time. An employer must give at least two weeks’ notice of the policy’s provisions, and employees must sign the policy acknowledging their understanding of the rules.
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