Vacation pay is a benefit at American Veterinary Center. If an employee separates from the practice, how is unpaid vacation pay handled by federal law?
  1. Employers can create their own policies regarding benefits
  2. Vacation pay must be paid
  3. Employee must be offered equal compensation
  4. Employer is under no obligation to honor unpaid vacation
Explanation
Answer: A- If an employee separates from the practice, most states allow employers to create their own policies regarding benefits. The policy must be clear, followed consistently, and cannot contain anything that is protected under the Fair Labor and Standards Act.
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