Legal Question in Employment Law in California

Forced payout of vacation time
My company has been sold to another company. We were informed on 10/26 that on 10/29 our unused vacation that has been accrued up to this point will be paid out to us. In Nov and Dec, we will accrue at our regular rate (basically a day a month). My question is this: Is it legal for a company to force a payout of your vacation? They have also stated that if you are planning to take a vacation after the payout, you will have to take a vacation without pay. How is this fair? Shouldn't they give some kind of notice of what is going to happen? In addition, won't this payout be taxed like a bonus, and therefore, aren't we losing money on the deal?

Asked on 10/26/04, 11:19 am

Okorie Okorocha California Legal Team

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Re: Forced payout of vacation time

If you do not get the vacation, they have to pay you. If they are paying you, then they are not doing anything wrong in the eyes of the law.

Answered on 11/02/04, 8:21 pm

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