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California law does not require employers to provide employees with vacation pay. Most employers, however, do provide employees with the benefit of vacation pay. When they do, California law treats the accrued vacation pay under the employer’s policy as the employee’s wages. This means employees are owed all accrued and unused vacation time when their employment ends with the employer.
For example, if an employee quits or is involuntarily terminated (regardless of the reason) and has 40 hours of accrued vacation pay that was not used, the employee is owed 40 hours’ worth of pay at the regular rate of pay upon termination in addition to all other wages owed. As vacation benefits usually involve large blocks of paid time, unpaid vacation pay results in massive and unlawful wage loss for California employees.
If you feel you have been unlawfully denied vacation pay in California, contact our office today for a free consultation and vacation pay analysis.
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