Connecticut lawmakers are considering whether to prohibit companies from imposing “use it or lose it” policies for paid vacation time.
A bill would require companies to let employees carry over unused vacation days to the next calendar year, or receive a lump-sum payment for the value of those days.
It would not apply to government jobs or those in public and private schools, and would not force businesses to change current union contracts or offer paid vacation if they do not already.
State Rep. Steve Fontana, D-North Haven, told the legislature’s labor and public employees committee Thursday that the bill would reduce turnover by helping employee morale. Many workers delay their vacations to help solve employers’ scheduling problems, he said.
“This bill provides flexibility and fairness,” he said.
But some questioned whether the logistics might be burdensome for some businesses, such as those that must follow strict accounting requirements to disclose specifics of their financial liabilities for each year.
It also could complicate the way that corporations determine employees’ compensation packages, said Kia Floyd, assistant counsel for the Connecticut Business and Industry Association.
“Obviously, employees need vacation. No one’s arguing that,” she told the legislative committee. “It’s really the mechanism that you’re using (in the bill) to allow them to carry over.”
The committee did not take action Thursday on the bill.
