Apparently the economic downturn has made employees skip vacation due to lack of funds and anxiety. And "overworked employees are more prone to exhaustion and sickness, and are less productive at work." Not to mention the "administrative and payroll nightmare" that may ensue when employers are forced to pay out the unused vacation time.
One of the proposed solutions to this problem struck me as a bit odd:
"As a safeguard, every employer should have a provision in its vacation policy to the effect that the employer can schedule employees' vacations."I've heard of "use-it-or-lose-it" vacation time, but this is "use-it-or-USE-IT!" As an employee, I'd be slightly offended if my employer deemed it necessary to dictate when I need a time out. It's all a little babysitter-ish for my taste.
That said, state mandates that employers pay out unused vacation time may make it a necessary evil in parts of the country.