Denied Earned Vacation Pay Upon Termination?

December 18, 2013

Important Information

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At A Glance

This Alert Affects
Employees in California who were terminated and did not receive their earned vacation time.
Damages
These employees may be able to file a claim to recover their unpaid vacation time, as well as penalties for their employer's willful failure to pay.
Company(ies)
Employers in California
Additional Details
It is illegal under California vacation pay law to refuse an employee earned vacation time upon termination. California law also forbids "use-it-or-lose-it" vacation policies in which an employee must use their vacation days at the end of the year, or be forced to give them up.
Date
Employees who are fired or let go must receive their earned vacation pay on their last day of employment. Those who quit must be paid their earned vacation time within 72 hours of their final day of work.