Payout of accrued vacation upon separation

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Payout of accrued vacation upon separation

My California employer has a policy of not paying out accrued vacation upon
separation of an employee. Is this legal, or do they have to pay for accrued
vacation?

Asked on October 13, 2016 under Employment Labor Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Under CA law, earned accrued vacation is part of a worker's wages, so they must be paid for it. This is true whether they quit or whether they are fired. The exceptions would be if there is a company policy, union agrecommission.ement or employment contract that requires that an employee loses their benefits when they depart. For further information, you can contact the Department of Industrial Relations.


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