When I was managing retail shops in California in the early 90's, we were required to pay out any unused vacation time at the end of the year (I can't remember if it was calendar or fiscal), or when an employee left. We really pushed them to take their vacation.

Don't get me started on labor law in CA... Just trying to keep in compliance and protect the company from lawsuits cost about 10 to 15 hours a week of my time. We had to document everything in just such a way so we could win the lawsuit when we termed someone for cause (mostly theft or incompetence), or if they quit (yeah, they'd quit, then sue us claiming that we made the workplace unworkable). Very tiring.

-jk