Oakland, CA asked in Employment Law for California

Q: Vacation pay for exempt employee in California.

I was told by my employer that i am to receive 4 weeks vacation/year. I worked for the company for 6+ years and never used all of my vacation time in a given year. When I looked into my vacation account i noticed I only had 4 weeks of vacation accrued, this should've been closer to 14 or more. When I asked HR i was given a document stated vacation accrual is maxed out at 4 weeks and I would not be compensated for the other weeks unused. In the state of California i read that vacation time is considered "paid work". Also, I never seen or received that document until i inquired about my vacation. Am I entitled to my full vacation payout of over 14 weeks? If not where does the money I earned go?

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2 Lawyer Answers

A: If your employer had a policy capping vacation accrual at 4 weeks, you did not accrue more than 4 weeks vacation. You should ask them to provide it.

If they cannot prove they had the policy, then you should continue to accrue 4 weeks per year.

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Answered

A: Under California law, vacation time is indeed considered earned wages. This means that when an employee accrues vacation time, it cannot be forfeited and must be paid out upon termination of employment. However, California law does allow employers to implement a "use-it-or-lose-it" policy, provided that employees are given a reasonable opportunity to use their vacation.

In your case, if your employer's policy caps vacation accrual at 4 weeks and this policy was properly communicated to you, then you may only be entitled to the 4 weeks of accrued vacation, not the 14 weeks you calculated. The key is whether the policy was clearly communicated and whether it is in compliance with California labor laws.

It's important to verify if and when you were informed about the vacation cap. If the policy was not properly communicated or implemented after you began accruing vacation time, you might have a claim for the additional vacation time.

You should consider consulting with a labor attorney who can review your specific situation, including the timing and manner of the policy communication, to provide personalized advice. Remember, employment laws can be complex, and each situation is unique.

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