Paying out vacation upon resignation to CA employee
Evswife
15 Posts
Do we have to pay out unused vacation time to an employee in California who has resigned according to our policy that she has earned, but would not be eligible to take until her anniversary date? In other words, this employee earned and is able to take the time she accrued on her one year anniversary last month, which I know needs to be paid out, but now that it is two months after her anniversary date, do we also owe her for a prorated amount that she is earning, but not able to take yet? In Illinois, this is the law, so I am wondering if CA is the same way? Anyone know? I would greatly appreciate it, as the DOL in CA is very difficult to get ahold of! Thanks.
Comments
In the past we had to pay many employees their accrued but unused vacation before they were even eligible to take it. We revised our policy so employees do not begin accruing vacation until they have worked for us 6 months. This change saved us at least $5,000 per year.
The California Labor Commissioner's office is a great resource to call with questions. Their number is (916) 263-1811.
Good luck!
Beckie
Is your vacation time "accrued or earned". I think that might be what needs to be cleared up and when employee actually is eligible for the time.
E Wart
Missouri courts are starting to treat all paid time off as earned property. It looks to me like the judiciary is trying to legislate employment law, by forcing employers to use one lump or pool of paid time off. Why have another system if the courts are going to make you treat all leave the same?
-Abby