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Q.Is paid vacation time required? (CA)
A.NO. In California, employers are not required to offer their employees either paid or unpaid vacation time. However, if an employer does have an established vacation policy, or provides an employee offer or agreement providing for a paid vacation, then certain restrictions are placed on the employer as to how the employer fulfills its obligation to provide the employee with his or her paid vacation.
California law treats earned vacation time as wages, and as such provides that vacation time is earned, or vests, as labor is performed. For example, if an employee is entitled to two weeks of vacation (10 work days) per year, after six months of work the employee will have earned five vacation days which cannot be forfeited, even upon termination of employment. Pursuant to California Labor Code Section 227.3, all earned and unused vacation must be paid to the employee on the employee's final day.
Although earned vacation time cannot be forfeited, an employer can place a reasonable cap on the amount of vacation benefits that may accrue.
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