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Q.My employer told me I forfeited my vacation because I didn't take it. Is this legal?

A.No. An employer cannot have a "use-it-or-lose-it" vacation policy under which an employee forfeits accrued vacation time if not used by a specified date or within a particular period of time.

In California, vacation pay is considered a wage which vests as it is earned. A California employer must either allow the employee to take his or her earned vacation time or pay the employee the value of the vacation time earned at the employee's then current rate of pay.

A California employer may, however, place a cap or limit on the amount of vacation time an employee may accrue.




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