Since employers are not required under the Fair Labor Standards Act (FLSA) to provide any vacation time to employees, there is no prohibition on an employer giving vacation time and later requiring that such vacation time be taken on specific days. Therefore, an employer may require exempt employees to use accrued vacation time for any absence, including one resulting from a plant shutdown, provided the employees are paid an amount equal to their guaranteed salary.

However, if an exempt employee does not have any accrued vacation benefits, or has a negative balance, the employee still must receive his or her guaranteed salary for any absences occasioned by the employer or the operating requirements of the business. If not, the FLSA’s salary basis test, which prohibits reductions from salary due to variations in the quality or quantity of work performed, would be violated.

Source: W & H Opinion Letter No 2599 (FLSA2009-2), 09-11 CCH-WH ¶31,507, January 14, 2009.