Employers of workers within the State of California are not required to provide paid vacation or paid time off (with the exception of paid sick leave which is a new law in Calif. which is effective on July 1, 2015 – See blog on this page regarding Healthy Workplaces, Healthy Families Act or California paid sick leave law.)
However, employers who provide paid vacation or paid time off (PTO) that can be used for anything other than just sick leave, must pay the employee her/his earned and unused vacation or PTO in the employee’s final paycheck. (See Blog on this page regarding when a final paycheck for California employees is due.)
California labor laws provide that once an employee has earned paid vacation or PTO (not sick leave), it is owned by the employee and cannot be forfeited, lost, etc. The employer is required to either allow the employee to use his/her earned and unused vacation or PTO or pay the employee the earned and unused vacation or sick leave in the final paycheck.
Since there is no law requiring paid vacation or PTO, an employer does not have to provide either and if the employer does provide paid vacation or PTO, the employer may decide if it carries over to the next year or must be used before a certain time and may cap the amount of days or hours of paid vacation or PTO that carry over to the next year. A “use it or lose it” policy with regard to earned vacation or PTO is unlawful in California.
Employers who provide paid vacation and/or PTO should have a written policy or employee manual which states how many hours/days an employee earns and when it is earned. For example, does the employee have to wait 30 or 90 days before the paid time begins to accrue? Does the employee receive X amount of hours per paycheck or does he/she earn 40 hours every January 1st? If you are an employer and you do not have a written vacation or PTO policy or employee manual, call Law Office of Kristine S. Karila, specialist in labor and employment law to discuss having an employment manual and/or written policy drafted. Failure to pay vacation or PTO – once it is earned and not used, can be costly since California waiting time penalties may kick in and provide up to 30 day’s pay to the employee plus payment of the employee’s attorney’s fees, as the law requires if any “wages,” including vacation or PTO are “willfully” withheld. California defines earned vacation or PTO as “wages.”
Employers should include the number of hours earned, available, and/or used on each of the employee’s paystubs.
If you are an employee who earned and did not use any vacation or PTO, and were not paid for it, call Attorney, Kristine S. Karila for a free initial phone consultation. (949) 481-6909.
Copyright 2015 - Law Office of Kristine S. Karila
However, employers who provide paid vacation or paid time off (PTO) that can be used for anything other than just sick leave, must pay the employee her/his earned and unused vacation or PTO in the employee’s final paycheck. (See Blog on this page regarding when a final paycheck for California employees is due.)
California labor laws provide that once an employee has earned paid vacation or PTO (not sick leave), it is owned by the employee and cannot be forfeited, lost, etc. The employer is required to either allow the employee to use his/her earned and unused vacation or PTO or pay the employee the earned and unused vacation or sick leave in the final paycheck.
Since there is no law requiring paid vacation or PTO, an employer does not have to provide either and if the employer does provide paid vacation or PTO, the employer may decide if it carries over to the next year or must be used before a certain time and may cap the amount of days or hours of paid vacation or PTO that carry over to the next year. A “use it or lose it” policy with regard to earned vacation or PTO is unlawful in California.
Employers who provide paid vacation and/or PTO should have a written policy or employee manual which states how many hours/days an employee earns and when it is earned. For example, does the employee have to wait 30 or 90 days before the paid time begins to accrue? Does the employee receive X amount of hours per paycheck or does he/she earn 40 hours every January 1st? If you are an employer and you do not have a written vacation or PTO policy or employee manual, call Law Office of Kristine S. Karila, specialist in labor and employment law to discuss having an employment manual and/or written policy drafted. Failure to pay vacation or PTO – once it is earned and not used, can be costly since California waiting time penalties may kick in and provide up to 30 day’s pay to the employee plus payment of the employee’s attorney’s fees, as the law requires if any “wages,” including vacation or PTO are “willfully” withheld. California defines earned vacation or PTO as “wages.”
Employers should include the number of hours earned, available, and/or used on each of the employee’s paystubs.
If you are an employee who earned and did not use any vacation or PTO, and were not paid for it, call Attorney, Kristine S. Karila for a free initial phone consultation. (949) 481-6909.
Copyright 2015 - Law Office of Kristine S. Karila
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