Q.What happens to earned, accrued and unused vacation if an employee is discharged or quits?

A.Pursuant to California Labor Code Section 227.3., absent a collective bargaining agreement, whenever the employment relationship ends, the employer must pay the employee at his or her final rate of pay for all earned, accrued and unused vacation days. Because paid vacation benefits are considered wages, such pay must be included in the employee’s final paycheck.

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