Vacation Pay in California
the past several years, California labor law attorneys have struggled,
through the courts, to come to terms with the vagaries of California
vacation pay and related payment rules. Employers in California have
come up with elaborate vacation plans which in some cases have been
judged to be illegal under California labor law.
Is California Vacation Pay Required?
to California vacation pay rules, if a California vacation plan is
specifically offered under an employer's policies, it must be
enforced and administered. In general, however, it is not
mandatory for employers to furnish their employees with California
When do Employees Lose Their Rights to Their California Vacation Pay?
short, the answer is - rarely. Per Suastez v. Plastic Dress Up (1982)
31 Cal.3rd 774, a governing case in this area of California labor law,
California employers are forbidden from implementing a "use it or lose
it" California vacation policy that requires employees to forfeit
accrued vacation time. California vacation pay law mandates that, upon
separation from employment, any non-utilized California vacation pay
must be remitted according to the employer' vacation pay rules.
the other hand, per Boothby v. Atlas Mechanical (1992) 6 Cal. App 4th
1595, employers are allowed to institute a reasonable cap on further
accrual of California vacation pay benefits. As an example; your
employer is not permitted to demand that you use all of your 18 days of
accrued California vacation time before the end of the year or suffer a
reduction in your "bank" of vacation time to 7 days at the start of the
new year. However, your employer may demand that you follow a rule that
that states that if you have 18 days of accrued California vacation
time, you may not continue to accrue any additional time until some of
your current vacation days are used.
summation, when an employee is separated from employment, pursuant to
California Labor Code §§ 201, 202, 227, 227.3, all accrued but unused
and unpaid California vacation benefits must be paid. If you believe
that your employer has violated vacation pay policies by denying you
California vacation pay, our California labor lawyers are standing by
to evaluate your possible claim.
San Francisco ERISA Attorneys
employers in California may try to skirt the more restrictive
California vacation law by trying to establish a funded plan under the
federal ERISA (Employee Retirement Income Security Act) law. However,
many of these plans are not in compliance with the stringent
requirements of ERISA and, therefore, directly violate California
vacation pay laws. If you are in doubt as to whether or not your plan
is in compliance with state vacation law, it would be prudent to
contact an seasoned San Francisco ERISA attorney who will
be able to determine if your employer is in compliance in the state of
you believe that your employer has a California vacation pay policy
that violates California labor law, or if you believe that your
employer is illegally denying you your vacation pay compensation, our
California labor law attorneys have a wealth of experience in
evaluating California vacation plans and related claims, so please
contact us for a thorough review of your claim at no cost. We at United
Employees Law Group are devoted to standing up for and protecting
California employees with vacation pay claims against employers who do
not comply with California state labor law.
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