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Q.My employer’s vacation policy states that if I don’t use all of my vacation by the end of the year it's forfeited. Is that legal?
A.No. Under California law, earned vacation time is considered wages, and vacation time is earned, or vests, as labor is performed. Vacation pay accrues (adds up) as it is earned, and cannot be forfeited, even upon termination of employment. Suastez v. Plastic Dress Up, 31 C3d 774 (1982).
You can either file a wage claim with the Division of Labor Standards Enforcement (Labor Commissioner), or you can file a lawsuit in court against your employer to recover the lost wages. Additionally, if you no longer work for this employer, you can make a claim for the waiting time penalty provided by California Labor Code Section 203.
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