California Employment Law: Rollover Vacation Time & Resignation
Just resigned from my job to take up another position elsewhere. Left on immaculate terms, no bridges burned. Unfortunately, for all things HR, I am at the mercy of our bureacratic goliath of a headquarters back East who barely knows my office exists, let alone CA employment law.
I know CA law states that employees are allowed to roll over unused vacation time (ie, employers are not allowed to take it away). I rolled over 10 days from last year, used 3, and have 7 remaining in my roll-over bank. I had assumed my employer would pay me for these in my final paycheck along with this year’s accrued vacation time because they were 100% earned and legally protected for me to use this year, but my employer states that their policy is not to pay for the rollover days, and therefore I forfeited them as a loss upon my notice of resignation.
However, they also said they are just following their corporate (NY-based) policy on this matter. I do not know what CA laws states with regard to this issue, and what my rights are. It may be menial, but it’s still a week and a half’s pay that I feel I am entitled to. Does anyone know the law?
Answer: I lived and worked in CA, but my employer was based in FL with the company headquarters being in IL. All FL employees had to use their vacation up by the end of the year. There were no rollovers. However, because I was a CA resident, I was able to rollover some horrendously high amount like 176 hours. Don’t quote me on that. I don’t remember, but it was a lot. And yes, they have to pay you for ALL of it because it was already earned. They cannot take away earned vacation time or earned PTO.
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2 Responses to California Employment Law: Rollover Vacation Time & Resignation
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I’m going to take your word on the California law issue and assume that there is the rollover issue.
I can tell you that it matters not that the company is based in NY. The labor law that matters is where you live, not where the company is based.
California Labor Law protects your right to keep vested vacation pay. Under California Law, vacation and PTO are wages that have been earned, but not yet paid to the employee. As such, once you earn the vacation, it can not be taken away, and "use it or lose it" policies are illegal.
California Labor Code Section 227.3 states that
"Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination. The Labor Commissioner or a designated representative, in the resolution of any dispute with regard to vested vacation time, shall apply the principles of equity and fairness"
http://www.gotovertime.com/california-vacation-law.html
All this should be spelled out in your employee handbook. Do you still have it?