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.
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.
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