California Vacation Pay Law

Are you entitled to vacation benefits in your final paycheck?

An employer does not have to provide for vacation time (paid or unpaid) under California labor laws. However, if an employer provides vacation benefits, it is considered to be a wage. As such, once earned, vacation time cannot be taken away and any unused vacation days must be paid out in an employee’s final paycheck.

"Use It or Lost It" policies

"Use It or Lose It" policies state that employees must use their vacation benefits within a certain amount of time (typically a year) or else lose the earned vacation. “Use It or Lose It” policies are illegal under California employment law. It is legal however, for the employer to cap how much vacation time an employee is allowed to earn, provided that such a cap is clearly communicated to the employee.

Questions about vaction pay?

If you believe that your employer is violating California vacation pay law, or if you would like more information about California vacation pay law, please call (866) 981-4800 or fill out the form on the right for a confidential consultation with a California employment lawyer.

Eric Gibbs

Dylan Hughes

Matthew George

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.