Legal Question in Employment Law in California

vacation time, termination & non exempt employees

I am a non exempt employee at a 501c3 organization in California, which is in dire financial straits.

Our current policy manual says that when an employee leaves, they are paid their unused vacation time accumulated through the date they leave.

Can the organization refuse to pay if they do not have the money because they declare bankruptcy, for example? Are they obliged to pay unused vacation time if an employee voluntary leaves? Are they obliged to pay unused vacation time of an employee is laid off? And are there any considerations to be made if the employee is non exempt?

I realize this is a lot of questions so if anyone has a web site that they can point me to I'd also appreciate that if it's easier.

Thank you!


Asked on 4/12/05, 12:19 am

2 Answers from Attorneys
Tom Walker Law Offices of Thomas C. Walker

Re: vacation time, termination & non exempt employees

Easy answer. Call the DLSE and discuss the situation and your options. (Wages, vacation are priority items.) This is our Labor Comm website http://www.dir.ca.gov/dlse/dlse.html

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Answered on 4/13/05, 6:41 pm
Alden Knisbacher knisbacher law offices

Re: vacation time, termination & non exempt employees

They are required to pay your vacation time, regardless of their financial straits and regardless of your status as exempt or non-exempt; if the company files for bankruptcy -- wages owed employees 90 days before the BK is filed have priority over other claims (vacation pay is a form of wages,) this might mean that you would get more of what's owed you than other creditors would get. . .

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Answered on 4/13/05, 6:56 pm


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