Vacation Pay for California Employees

There is no California or federal law, which requires employers to provide employees with vacation time.  Nonetheless, if the employer does provide vacation time, certain provisions of the California Labor Code must be followed.

Vacation time is treated as deferred wages and accrues and vests proportionately as time worked.  Therefore, California employers cannot have a “use it or lose it” policy by which earned vacation expires.  Employers may, however, put reasonable caps on accrued vacation, provided those caps were disclosed to the employee beforehand (e.g. in the employee handbook, offer letter, or the employment agreement).  A vacation pay policy will likely violate state law if the cap on accrual is so small that it is, in practice, a “use it or lose it” policy.

An employer’s policy generally controls how much vacation time an employee earns, and different amounts of vacation time may be given to different employees if the policy is clear. Employers are generally permitted to exclude certain employees from the vacation time policy for a certain amount of time at the beginning of employment (e.g. during a probationary period). Also, the employer is free to control when vacation is taken and how much vacation is taken at any one time.

Generally, all accrued vacation is due upon termination, layoff or quit, and an employment contract cannot force an employee to forfeit earned vacation.

The statute of limitations to bring a claim for unpaid vacation is three years from the date the employee is terminated or resigns. This statute of limitations begins to run when employment ends, not when the employee’s vacation accrued. Thus, an employee can recover any vacation that vested during the employment relationship, even if it accrued long before the filing of the claim.

Read more

disability discrimination lawyer

Partial paraplegic engineer gets $425K in San Diego disability discrimination suit

Employees with disabilities deserve to have flourishing careers and opportunities to earn a living, just like anyone else. Unfortunately, far too often workers with disabilities do not fully understand their rights and…

READ ARTICLE
age discrimination lawyer

Santa Monica College instructor’s age discrimination suit reinstated

Discrimination lawsuits often go hand in hand with other employment violations. For example, if an employee was fired based on their age, they would also have a wrongful termination claim. If a…

READ ARTICLE
wrongful termination lawyer

California furniture store employee fired after testing positive for COVID-19

The coronavirus pandemic has presented a whole host of issues for workplaces across California. While companies have been forced to deal with various hardships, what many people may not realize is that…

READ ARTICLE
disability discrimination lawyer

Sacramento car dealership sued for firing worker who might have cancer

There are laws in place to protect employees from being discriminated against or fired based on their disability. When a used car dealership in Sacramento, California, fired an employee shortly after finding…

READ ARTICLE
SEEN ON
cnnmoney
marin-ij
dailypost
news10