Legal Question in Employment Law in California

Previous employer did not pay me my accrued vacation time when I quit

I just quit a job with a company whose is one of the top 5 major retailers in the country. When I left they did not pay me my accrued vacation time. That would be the vacation time I earned this year, to be used the following year. My interpretation of California Labor Law states that I am entitled to this pay. But, I'm no lawyer and maybe I'm missing something. This issue has been addressed with my ex-employer, and they claim they are exempt from California Law due to the Federal ERISA law which supercedes it. Is this true? This company has been doing this to ex-employees now for quite sometime. If they owe me this money, then they also owe a lot of other people a lot of money also.

Thank you in advance for any light you can shed on this subject.


Asked on 10/16/99, 11:49 am

3 Answers from Attorneys

Roger Renfro Renfro & Associates Law Corporation

Re: Previous employer did not pay me my accrued vacation time when I quit

Generally a California employer is required to pay a California employee accrued vacation within three days of termination. There are several exceptions to that general rule, however. One such exception suggested by your question is an employee benefit plan designed especially to provide vacation type benefits. If this is the case, you should request from the Plan Administrator, in writing, a copy of the Summary Plan Description of this special employee benefit plan. It also may be possible to obtain a copy of the actual employee benefit plan and trust agreement, if applicable, as well (most employers will charge you a modest fee for a copy of this document though). You should save a copy of your letter requesting this information for future reference. Under certain circumstances, an employee benefit plan established and administered by an employer may be subject to federal, not state law. Hypothetically, your employer may be attempting to avoid the impact of California legal requirements regarding payment of compensation upon termination of employment (e.g., vacation), by asserting that the vacation benefits provided by this employee benefit plan are "funded" -- as opposed to unfunded -- and thus (1) are not part of the employer's general assets, and (2) the vacation employee benefit plan requires ongoing administration. By making this asserting, the employer is stating that federal, not California law applies. If correct, your rights to vacation benefits will be set forth in the Summary of the Plan and the Plan itself. Due to the complexities of the interplay between state and federal law concerning the subject matter of your question, you should consult with a local employee benefits attorney immediately to determine your rights to vacation pay.

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Answered on 10/22/99, 6:14 pm
Stuart Kaye Law Offices of Stuart M. Kaye

Re: Previous employer did not pay me my accrued vacation time when I quit

Employees in California are entitled to all accrued vacation at the time of termination of their employment. See Labor Code Section 227.3. The issue of ERISA preemption has been dealt with in California and such claims may be preempted if the employer maintains a separately funded account for the payment of vacation pay.

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Answered on 10/18/99, 3:43 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Previous employer did not pay me my accrued vacation time when I quit

Go to the state labor commissioner. they will evaluate your situation and if you are owed the money they will collect it for free.

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Answered on 10/18/99, 3:50 pm


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