Legal Question in Business Law in California
If an employee is suing you for unpaid vacation pay and they pass away is the lawsuit atomatically resolved?
2 Answers from Attorneys
Before you conclude that your former employee is on a permanent unpaid vacation, remember that there is always the possibility that his spouse, etc. may move to substitute in as plaintiff. But if the case depends on the plaintiff's testimony and there is also no deposition testimony from the plaintiff, the lack of evidence could be dispositive of the case.
Accrued vacation is considered wages in California, and an employer must pay out all accrued but unused vactaion at the termination of the employment relationship. (Lab. Code, sect. 227.3; Suastez v. Plastic Dress-Up Co. (1982) 31 Cal3d 777, 782-784.)
At common law, a plaintiff's cause of action ended when the plaintiff died. California departed from this doctrine by statute. "Except as otherwise provided by statute, a cause of action for or against a person is not lost by reason of the person's death, but survives subject to the applicable limitations period." (Code Civ. Proc., sect. 377.20, subd. (a).)
Didn't your attorney provide this information to you? There are severe waiting time penalties for failing to pay something like this.
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