Legal Question in Employment Law in California

Re: Layoff and vacation pay

It depends on how the policy is worded. If the employee is not eligible to earn vacation pay until they have been there for one year, it may not have been vested, therefore, no proration is necessary. Carefully review the wording of company vacation policy and compare how it has applied with other employees.

Re: Layoff and vacation pay

If the employer's policy is 2 weeks of vacation after completion of one year, you will be entitled to 10/12 of the 2 weeks if you have completed 10 months of employment. Vacation pay for both non-exempt and exempt employees is earned as you work, unless the employer's policy specifically provides that no vacation is earned until the completion of a particular period of employment, ie during the probation period. Even in such cases, if the policy is not carefully written, the employer will be required to provide vacation pay for the entire period worked.