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Vacation Pay

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Definition: Federal law does not provide for vacation pay. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick time, or holidays. Therefore, employees are not entitled to paid vacation time off from work.

Vacation pay is based upon an agreement between an employer and an employee, either a collective bargaining agreement or company policy. The agreement or company policy will determine how much vacation pay you will get.

Vacation Pay Q & A

Also Known As: vacation pay, paid vacation
Examples:
Anthony's company provides ten days of paid vacation each year.

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