Vacation time and paid holidays may be a relatively standard benefit to offer to full-time employees, but in the United States, it’s not actually legally mandated. While many employers are well aware of this, it’s important to make a note of, since employees often treat it as a right. In fact, vacation time is typically seen as a nonnegotiable benefit that is expected with a full-time job.
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It’s for that reason that vacation (or paid time off (PTO)) and paid public holidays are generally standard, even though this is not legally mandated. Employers that consider removing this benefit would likely face a dearth of applicants—applicants know they can get better benefits elsewhere. On the other hand, vacation policies that provide ample time off can be a competitive advantage for employers hoping to attract top talent.
There are, however, problems that result from the lack of consistency in vacation policies among different employers and even different employee groups with the same employer. Let’s take a look at how the United States compares to other nations and then focus on some of the potential problems that result from a lack of mandated vacation time.
Vacation: How the United States Compares to Other Countries
The fact that vacation is not legally mandated is something that is unique to the United States among developed countries. All other highly developed nations make paid vacation and holiday time a legal requirement—and most do so at levels higher than the standard amount given in the U.S. workplace. For example, Switzerland, Italy, and Belgium (and many other countries) employers are legally mandated to provide a minimum of 20 days of paid vacation time plus paid public holidays to their employees. Sweden, Denmark, and France offer even more at 25, 25, and 30 days, respectively—plus paid public holidays, too. These are just a few examples.
This is something to bear in mind as it may affect future workplace trends in the United States. It also highlights the fact that paid vacation time does not necessarily equate to a loss of productivity, as there are plenty of examples of countries with mandated paid vacation that have productive and growing economies.
The Big Picture: Inequality Concerns
At the end of the day, what difference does it make if vacation is not mandated when so many employers offer it as a standard benefit? The short answer is that this benefit ends up being applied unevenly across groups of employees. The end result is that even with a large number of employers offering paid vacation as a standard benefit for full-time employees, a large percentage of employees end up with no PTO at all. This creates inherent inequality when there is no standard to keep employee treatment consistent across all groups.
This inequality comes about for multiple reasons:
- Higher-paid employees are in a better position to negotiate more vacation time, whereas entry-level employees have less negotiation room and end up with the default offering, which may be nothing. (Though employers should be careful to not appear to discriminate by offering too much variety in vacation benefits.)
- Part-time workers, who often work more than one job to make ends meet, are typically not offered the same vacation and holiday benefits as full-time employees.
- Smaller employers are less likely to provide vacation time at all since it is not required.
As a result of these factors, some employees get enough vacation time, but others get much less or even none at all. The result is a situation where there are wide discrepancies between employee groups in terms of vacation and paid holiday benefits, which can affect employees in many ways. Here are just a couple examples:
- The inability to take PTO can mean less flexibility to handle personal matters unrelated to illnesses.
- Poorer and part-time workers are more likely to lose a job over the need to take time away from work.
Another concern for employers is that lack of vacation may mean a workforce that is more likely to be susceptible to stress, burnout, and illness. This can mean more illness-related absences and even more turnover in the long run. This is certainly something to bear in mind when setting vacation policies. (Also bear in mind, as with all employment laws, there are some exceptions at the local level. Check to ensure you are in compliance with your local laws.)
About Bridget Miller:
Bridget Miller is a business consultant with a specialized MBA in International Economics and Management, which provides a unique perspective on business challenges. She’s been working in the corporate world for over 15 years, with experience across multiple diverse departments including HR, sales, marketing, IT, commercial development, and training.