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    VACATION POLICY AND PAY NOT A CONTRACT

    A recent Minnesota Court of Appeals decision, if no appeal to the Minnesota Supreme Court is granted, eliminates certain confusion about whether a vacation policy can create a contract in situations where an employee handbook includes a clause specifically precluding the formation of a contract. At issue was the purchase of Lund Boats by Brunswick and the difference in their policies. The Lund policy, however, was contained in a document that had a clear and conspicuous disclaimer of a contract and specific language about the power to modify. The confusion arose from the fact that vacation can certainly be part of the promised compensation, so employers must follow their polices until they modify them, including vesting of accrued vacation. Roberts, et al., v. Brunswick Corporation, et al. (Minn. Ct. App. 2010)

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