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If, however, the contract stipulates your employee will earn two weeks of paid vacation on an annual basis, then she will earn two weeks of paid vacation while away on a one year maternity/parental leave, regardless of the hours worked that year. Then you will owe both vacation time and pay in that instance.
Based on FMLA guidelines there is no requirement for an employer to allow an employee to accrue earned vacation or seniority while on an FMLA leave. The Department of Labor link is attached below for your review. Scan down to the line âOther Benefitsâ for this information.