vacation pay

Could You Use a Vacation?

California vacation pay and the payment rules have been a hotly contested subject over the past several years.

California employers have devised intricate vacation plans in California, some of which have been deemed illegal under California labor law.



Vacation Pay – Is it Required?

In general, NO. However, if a vacation plan is offered under the employer’s policies, it must be honored and administered under the California vacation pay rules.

Will I lose my Vacation Pay? In most cases you should never lose it. California law states that if you leave your job, any accrued vacation pay must be paid. California employers may not implement a “use it or lose it” policy.

While you cannot “lose” your earned vacation days, your company can legally place a cap on the number of days you can accrue without using any, i.e. once you have 20 days earned you must use some before you can earn any more. When there is a separation of employment, all accrued but unused and unpaid vacation benefits must be paid under Labor Code §§ 201, 202, 227.3.

If you have been denied your vacation pay and feel your employer is in violation of vacation pay policies, our California labor lawyers are available to review your potential claim.

California ERISA Claims

Employers may try to avoid the restrictive California law on vacations by attempting to establish a funded plan under the federal ERISA (Employee Retirement Income Security Act) laws. It is common that many of these employers in the state of California do not have plans that comply with the stringent requirements of ERISA, and therefore are in direct violation of California vacation pay laws. If you are unsure as to whether your plan complies with the law, contacting an experienced California ERISA attorney may be a prudent decision to determine your employer’s compliance in the state of CA.

PAY NOTHING Until They Do!

Your Free and confidential consultation is waiting.

* These fields are required.

Fresno Super Lawyer 2015

fresno super lawyer


* In California you are entitled to overtime when you work more than 8 hours a day, the FLSA under Federal law mandates OT pay over 40 hrs worked in a week.


Are alternative work weeks legal? CLICK HERE.

Translate »