Legal Question in Employment Law in California
Vacation Accrual & Carry Over
My employeers vacation policy does not set a maximum accrual amount. It does allow accrued time to be carried over to the next year, however it reduces the accrual rate accordingly. Example: Person A normaly accrues vacation at a rate equal to 80 hrs per year. If ''A'' uses all their vacation, they will continue to accrue at the same rate next year. If ''A'' carries over 40 hrs, their accrual rate will be cut in half so they accrue only 40 hrs next year. If ''A'' carries over 20 hrs, their accrual rate will be cut in half so they accrue only 60 hrs next year. Is this in compliance with California law?
1 Answer from Attorneys
Re: Vacation Accrual & Carry Over
Yes, this is illegal. They can make the rules for accrual of vacation time virtually anything they want. The only thing they cannot do is applied a rule retroactively. In other words, they cannot take away vacation time that has already accrued. But, they can place limits on the amount that can be accrued.