Question: Must employees on leave continue to accrue vacation time?
Answer: Not necessarily. There is no federal law that says employees must continue accruing vacation/paid time off (PTO) while on a leave of absence (such as a furlough or Family and Medical Leave Act [FMLA] leave). Be sure to double check state or local laws, though. Most likely, as long as the employer has a consistent and fair accrual process, everything should be fine. Remember, it’s helpful to have these kinds of policies and procedures documented in an employee handbook.