California vacation pay laws don’t require employers to provide employees with paid vacations – but if you do work for an employer that does offer paid vacations, there are rules in place to help protect your benefits. These employers must follow certain guidelines because vacation time is considered a form of wages that an employee earns.
Under California law, vacation time is a type of wage. Because it’s something you earn, vacation time can’t “expire,” and if you haven’t used your vacation days, your employer must pay you for them when you leave the job.
Related: California wage and hour disputes: Unpaid wages
Usually, vacation time accrues as an employee works. For example, if your job offers you 30 days of paid vacation per year, you’ll accrue about 2.5 days of vacation time per month. There’s an exception, though: employers can withhold vacation accrual for up to a year for new employees.
Employers are allowed to offer vacation time to some employees but not others, as long as they’re not withholding the benefit from people based on a protected characteristic (such as race, religion or gender). That means vacation time can be reserved for managers, full-time workers or executives and withheld from other employees.
Sick leave isn’t the same thing as vacation time, and it’s not subject to the same rules. However, employers in California are required to provide a minimum number of paid sick days per year.
Related: 3 things most people don’t know about unpaid wages
However, you can’t just accrue 10 years of vacation time. Employers in California can place a cap on vacation accrual, which means that once you’ve earned a certain number of days of paid vacation, the employer can stop more days from accruing until you use some of the days you’ve earned. There’s no specific number for a “reasonable cap” under California law.
Employers can decide when and how employees can schedule time off work, which provides them with some control over the workforce. For example, an employer can require you to submit a request for vacation a certain number of days in advance, set aside “blackout dates” during which nobody can take vacation, and place limits on the number of workers who can be on vacation at the same time. That prevents an entire workforce from taking the holidays off, for example, which could cripple a business.
Related: Minimum wage in Los Angeles
The law in California says that if you have accrued but unused vacation days when you leave your job – whether you’re terminated or you quit – the employer must pay you for them. Again, that’s because vacation is considered an earned wage. The employer must pay them to you with your final wages, so:
If your employer has unlawfully held your wages or otherwise violated your rights under California vacation pay laws (remember, employers do not have to offer you paid vacation time), you may need to talk to a Glendale employment lawyer. Call us at 818-230-8380 or fill out the form below for your free consultation. If you’re entitled to compensation, we can help you get it.
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