Q. "Can we deny vacation requests?"
ANSWER:
In general, yes. But you should have—and document—a legitimate business reason for doing so. Denying vacation requests will undoubtedly hurt morale, especially if it happens frequently.
Discrimination claims are also a risk. Make sure you’re not denying vacation in a way that disproportionately affects employees with the same protected characteristic.
The best approach to avoid these types of discrimination claims is to periodically crunch the numbers to see if employees who share a protected characteristic are significantly more likely to have their request denied than others and, if so, adjust your practices accordingly.
When you really must deny a request, do so carefully. It’s important to show empathy. Stay focused on the fact that rejecting their request isn’t something you want to do—it's something you must do. State the organization's reason you couldn’t approve the request and work with them to find an alternative time they can take off.
If you find you are regularly denying requests when employees have a vacation planned, we recommend reaching out to an employment law attorney for additional guidance.