Legal Question in Employment Law in California
Vacation Pay
Are there any legal requirements describing how vacation pay is to be established in regardst to a plan that would give vacation days based on the number of hours/weeks/months worked by an employee? Can we structure it any way we want to? If an employee quits or is terminated, what method are we required to use in determining the portion of vacation pay due them?
Thank you.
2 Answers from Attorneys
Re: Vacation Pay
An employer may establish any plan for paid vacation. The employer may include a cap on accrued vacation but may not require an employee to forfeit accrued vacation.
An employee must be paid for the "pro rata share" of all accrued vacation, at the time of the employee's termination of employment.
Re: Vacation Pay
You are not required to give any vacation pay. If you do, it accumulates continually. You can place restrictions on when and how often it is taken. If an employee leaves for any reason the vacation time accumulated to date must be paid in their final paycheck. If you have more specific questions please feel free to call me. I represent a number of employers on these issues.