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Are personal days or floating holidays considered accrued vacation payable at termination?

The way an employer's policy defines personal days or floating holidays is critical to the issue of whether they are defined as vacation, and therefore whether unused days must be paid out at the end of the employment relationship. Specifically, time off which is:

Tied to a specific event, such as a birthday or employee anniversary date, is treated as a holiday; and
Not tied to a specific event (even if previous notification to the employer is required) must be treated the same as vacation time.

This means that a personal day or floating holiday an employee may take at any time for any reason must be treated as vacation which accrues and vests, and must be paid out at termination. A personal day or holiday that can only be taken upon the happening of a specific event need not be paid out at termination.

Read more about Vacation and Holidays in the HR Library.

Are personal days or floating holidays considered accrued vacation payable at termination?

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