My employer is terminating my full-time employment to move me onto a contract basis. I have been employed by them for 3 1/2 years and have used two weeks vacation, leaving four weeks outstanding. The company is stating that only two weeks for the current year is compensable as I have forfeited any other vacation time by not using it. I have worked from home the entire time. Apparently this policy was ciirculated to the office staff, but never to me.

Is it possible for me to go after them for payment of the two weeks vacation?

You need to find out if this policy is in writing an what the effective date was. They can't not take away earned vacation retroactively. Were you working under a signed contract?

My supervisor emailed me a pdf of the policy dated in 2008. I started working there in 2006. No one ever notified me of the policy. I work from home and was frequently left out of such details - like Christmas parties etc.

What are the odds of successfully pursuing this?

How much do you wish to work for them on a contract basis ?

You can win the battle but lose the war, As a contract worker, they may decide to end that of course.

Ignorance of a company policy will not allow you to get those days back. They have the ball in their court and Chuck is right.

What does the policy say about how vacation time is accrued?