Vacation Pay at Work

Vacation pay is not only a workplace benefit, but it is a legal entitlement under California law. When employers fail to provide earned vacation pay, it is not just unfair, but it is illegal. This violation can leave employees without the compensation they have rightfully earned.

What is Vacation Pay at Work?

Vacation pay refers to compensation employees earn for approved time off, typically accrued based on hours worked, length of employment, or company policy. In California, vacation pay is treated as earned wages, once accrued, it cannot be taken away. Key elements include:

• Accrual: Vacation time builds up as you work, according to your employer’s policy.
• No Forfeiture: Employers cannot enforce “use-it-or-lose-it” policies that strip away earned vacation time.
• Payout on Termination: Unused vacation must be paid out like wages when employment ends.
• Reasonable Caps: Employers may limit future accrual but cannot eliminate already earned vacation.

Understanding these elements is essential for recognizing when your rights are being violated.

Examples of Vacation Pay Violations at Work

Vacation pay violations can take several forms, including:

• Non-Payment: Refusing to pay out unused vacation upon termination.
• Illegal Policies: Enforcing “use-it-or-lose-it” rules that violate California law.
• Misclassification: Labeling employees as exempt to avoid vacation pay obligations.
• Delayed Payouts: Slow or incomplete payment of earned vacation wages.

Laws Protecting Your Rights at Work

Federal Protections

• Fair Labor Standards Act (FLSA): While the FLSA does not require employers to offer paid vacation, it ensures fair handling if provided.

California Protections

• California Labor Code Section 227.3: Mandates that earned vacation is treated as wages and must be paid out upon termination. It prohibits “use-it-or-lose-it” policies and enforces payout rights.
  California’s laws ensure employees are compensated for their earned vacation time.

How to Protect Yourself if You Experience Vacation Pay Violations at Work

If you suspect a vacation pay violation, prompt action is essential. Follow these steps:

1. Review Your Employer’s Policy: Check your employee handbook or contract for vacation accrual and payout terms.
2. Document Your Vacation Time: Track accrued and used vacation hours to identify discrepancies. It is critical that you not only document everything but also keep a copy of everything for yourself. If you use a work email, upon termination or constructive discharge, you will be immediately locked out of the system. So, it is important you have a copy of everything saved in real time. Do not wait until it is too late.
3. Report to Your Employer: Submit a written complaint through your company’s HR or complaint process.
4. File a Complaint: If unresolved, report the violation to California’s Labor Commissioner. An attorney can help you with filing these claims.
5. Consult an Attorney: An experienced employment lawyer in California can help you recover unpaid vacation pay and protect your rights. You have up to 3 years to claim unpaid wages, including vacation pay, but acting quickly preserves your case.

Time is critical, missing deadlines can weaken your claim.

Act Now to Secure Your Rights

Given the deadlines to bring these claims, it is important to act fast. California law provides powerful protections, and an experienced attorney can help you take action. Staggs Law is committed to protecting employee rights across California.

This is not legal advice and does not create an attorney-client relationship.