Vacation Pay

However, when an employer creates a vacation policy, practice or agreement to provide a paid vacation, California law creates a duty that an employer must generally pay employees all vacation wages which have accrued.

In California, earned vacation is considered wages. As the employee performs work, the vacation wages vest and the employer owes those wages to the employee. These vested wages cannot be forfeited and must be paid to the employee even if the employer terminates the employment relationship.

An employer may create a vacation policy which places a cap of vacation benefits, but the vacation policy cannot forfeit accrued vacation wages. Generally, unpaid vacation wages must be paid timely after employment ends.

If you believe that your employer has failed to follow the law in payment of your wages, contact Lavi & Ebrahimian, LLP today for a free consultation with an experienced employment attorney who will evaluate your options under the law to enable you to obtain the most complete relief possible.