In California, vacation time from work is not always guaranteed. Here is everything you need to know about how an employer can deny vacation time in California.
An employer is entitled to deny vacation time to their employees. In fact, there is no California law that requires an employer to provide their employees with a paid or unpaid vacation. However, the employer does have the right to deny an employee’s vacation time if it does not fall within their established vacation time policy. Violations of the employer’s established vacation time policy, such as not giving an early enough notice in advance of vacation, could result in the employee’s vacation time being denied.
How Does an Employee Earn Vacation Time?
In California, an employee earns vacation time similar to how they earn wages, the more one works the more the vacation time they earn. For example, if an employee earns one week of vacation time for every six months they work, then the employee will have earned two weeks of vacation time after one year of working.
California law dictates that vacation pay continuously adds up as it is earned and it is not able to be forfeited under any circumstances. Vacation pay is still entitled to the employee even if they are terminated from their work, regardless of the reason for the termination. This is protected by the ruling in Suastez v. Plastic Dress Up (1982) 31 C3d 774.
All earned and unused vacation time must be paid to the employee at their final rate of pay at the time of termination, however, there is one exception. The California Labor Code Section 227.3 states that unless both parties have agreed on a collective bargaining agreement at the time of termination that includes the unused and earned vacation time, then the final payment of this vacation time must be given to the employee.
Employee’s Rights to Vacation Time
Every employee is entitled to vacation time in California, these employee rights are protected by the California Labor Code Section 227.3.
- Once vacation time is earned, it cannot be taken away by the employer.
- Vacation time can not be prevented from “rolling over” into the next year of work.
- An employer cannot institute a “use it or lose” policy, meaning that there is no expiration date on the employee’s vacation time.
- An employer cannot in advance deduct an employee’s vacation time from their paycheck before the employee has used their vacation time.
- Every employee is entitled to file a wage claim with the Division of Labor Standards Enforcement (the Commissioner’s Office) or a lawsuit against their employer.
When an Employer Can Deny Your Vacation Time
There are circumstances where an employer can legally deny an employee their vacation time. Here are some of the ways an employee can get their vacation time denied by their employer:
- Each employer will most likely have their own vacation time policy, which will be enforced by the Division of Labor Standards of Enforcement (DSLR) so long as it follows the California Labor Code.
- An employee’s failure to adhere to their employer’s established vacation time policy could result in a denial of vacation time for the employee.
- An employer can place a limit on the amount of accumulated vacation time an employee has earned. The employer is entitled to place this limit on vacation time once a specific level of vacation is earned by not taken, and until the balance of vacation time falls below this limit.
- However, this limit must be reasonable, and any implementation of wrongful denial of vacation time by the employer will ensure that this policy is not recognized by the Labor Commissioner.
- Additionally, an employer can deny an employee vacation time because it may be subject to scheduling requirements specified in their policy. Not submitting a vacation time within and advanced notice requirements can lead to a denial of vacation time. Employers may also require “blackout periods” such as holidays where vacation time is not allowed to be used.
- For example, it is legal for an employer to have different vacation policies for varying employees (ex. part-time employees vs. full-time employees).
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If you or a loved one has any more questions about how an employer can deny vacation time, get your free consultation with one of our California Employment Attorneys today!