Legal Question in Employment Law in California

We would like to each year front load our employees with a pool of �Time Off� to a level equal to their current Personal Time Off (PTO) accrual rate. This would give people on October 1st each year their maximum amount of PTO (example: If you earn 3 weeks of PTO a year you would be front loaded with 120 hours).

What we want to know is if we do this and the person leaves (resigns, etc) in the middle of the year and they have these �Hours� still on the books, do we have to pay them off for those hours seeing they did not earn them but rather were given these hours? Thank you.


Asked on 3/08/12, 7:44 am

1 Answer from Attorneys

All accrued vacation time that has not been used must be paid out as wages when the employment terminates. If they didn't earn the time, you should not grant it to them unless you want to pay it out in the case of their employment ending.

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Answered on 3/08/12, 10:07 am


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