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An employer may lawfully implement a use-it-or-lose-it policy requiring employees to use their leave by a set date or lose it, so long as the employer has properly notified its employees of the vacation policy and gives then a reasonable opportunity to use their vacation leave before it is lost.
Under the law, there should not be any carry over. Moreover, employees cannot carry over their statutory minimum vacation time. If there is carry over, the employer has failed to comply with the Employment Standards Act.
Where employees may not carry over any accrued, unused time off from year to year, or carryover is limited to a certain number of hours or days. If employers want to comply with the Oregon law using their PTO policy, the PTO policy must allow employees to carry over at least 40 hours per year.
Oregon: Use-it-or-lose-it policies are allowed, but employers must pay out accrued vacation time if a vacation policy is silent on the issue.
Oregon is an employment-at-will state. This means that either the employer or employee may end the employment relationship at any time and for any reason, unless a law or contract provides to the contrary.
Oregon employers are not required to offer any vacation days to employees. However, when an employer does provide vacation as part of its employment contract, the final paycheck should include payment for the unused vacation an employee is entitled to receive.
It means that generally, unless there is a contract or law that states otherwise, Oregon employers may discharge an employee at any time and for any reason, or for no reason at all. However, employers may not fire or let employees go because of discriminatory reasons.
While many states permit employers to impose use it or lose it vacation policies, a few have restricted or banned them, including:Alaska;California;Montana; and.Nebraska.
In regards to annual vacation pay, the Employment Standards Act states that an employer has to make sure that every year vacation time and money earned are paid out to the employee. There is no carry over. Sometimes an employer lets the employee take a vacation right away in the first year.
Oregon employers are not required to offer any vacation days to employees. However, when an employer does provide vacation as part of its employment contract, the final paycheck should include payment for the unused vacation an employee is entitled to receive.