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Q.Must accrued vacation time be paid on the day of termination? (CA)
A.YES. In California, employers are not required to offer their employees either paid or unpaid vacation time. However, if an employer has an established vacation policy, California law treats earned vacation time as wages, and as such provides that vacation time is earned, or vests, as labor is performed. For example, if an employee is entitled to two weeks vacation (10 work days) per year, after six months of work the employee will have earned five vacation days which cannot be forfeited, even upon termination of employment. Pursuant to California Labor Code Section 227.3, all earned and unused vacation must be paid to the employee on the employees final day of employment.
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