Can an employer hold back vacation time that is owed when an employee resigns?

The question whether certain vacation pay and other discretionary pay benefits are owed to you upon separation depends on the employer's policies, which may be contained in a handbook or otherwise. Vacation benefits are not mandatory under New York law. Therefore, the employer can implement policies determining that benefits will not be paid under specified conditions.  Your employer cannot withhold your wages in exchange for your signature on a claims waiver, but depending on the company policy, it likely can withhold your vacation pay in exchange for that waiver, provided that the employer complies with all notice and other requirements under federal and state laws with respect to the waiver form. If you believe your employer has unlawfully discriminated against you or has failed to pay you wages or overtime pay that are required under NY law, you should consult an attorney to protect your rights before signing a waiver.