Lexmark's Use-It-Or-Lose-It Vacation Policy Illegal, Court Says

By Dan Prochilo (September 25, 2013, 10:00 PM EDT) -- A California appeals court last week upheld a lower court's ruling that Lexmark International Inc.'s "use it or lose it" vacation policy violated state labor law, but the panel said the $13.6 million judgment entered against the company in the wage-and-hour class action should be recalculated.

The three-judge panel of the Second Appellate District affirmed a superior court judge's decision that Lexmark's policy barring employees from carrying over vacation and personal days from one year to the next was unlawful, but agreed with the printer manufacturer that the court had overestimated how much the workers were owed.

"The matter is remanded...

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