Illegal Vacation Policies

Although there is no legal requirement in California that an employer provide its employees with either paid or unpaid vacation time, where an employer has an established vacation policy or practice, certain restrictions are imposed upon how an employer may fulfill its obligation to provide vacation pay thereunder.

Under California law, earned vacation time is considered wages, and vacation time is earned – or accrues – as work is performed. Vacation pay cannot be forfeited, even upon termination of employment, regardless of the basis for termination and/or whether the termination of employment was voluntary or involuntary.

Because vacation pay is a form of wages which vests as it is earned, a “use it or lose it” policy that provides for the forfeiture of vacation pay that is not used by a specified date is illegal under California law. Unlike “use it or lose it” policies, a vacation policy that places a reasonable “cap” or “ceiling” on the number of vacation hours that may be accrued is permissible, so long as it is not a subterfuge to deny employees vacation or vacation benefits.

Upon the voluntary or involuntary termination of an individual’s employment, all earned and unused vacation must be paid to the employee at his/her final rate of pay.

If you or a loved one have questions about the legality of your employer’s vacation policy or have been denied accrued vacation pay upon termination of your employment, it is critical that you retain an attorney with the essential knowledge, experience and skill necessary to evaluate all potential violations in this complicated area of law. In many instances, these claims are pursued as a class action or in a representative capacity on behalf of all other employees whose rights also have been violated.

The Law Offices of Craig Hubble and the attorneys with whom we work on these matters have successfully pursued a multitude of cases involving illegal vacation policies, including the pursuit of a numerous of class action lawsuits, representative actions and individual lawsuits, and we have been approved as class counsel in several California cases. Because these matters are handled on a contingency basis, there is no fee unless and until you are compensated.

Our experience, tenacity and skill have helped us thrive in this complex area of law. We employ a hands-on, dedicated approach to every matter, and we believe that it is vital that you get the personal attention and tireless, high quality representation that you genuinely deserve. We are committed to protecting your rights and obtaining the best results for you and your co-workers. Although we are based in the Los Angeles area, our practice extends throughout California’s state and federal courts.

Contact us today for a free consultation as to the legality of your employer’s vacation policy, as well as your rights and potential remedies.