California Vacation Law FAQs

Answers to California Vacation Pay Law Questions

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Is my employer required to give me vacation time?

No. California wage and hour law does not require employers to offer vacation time. However, if an employer chooses to offer this fringe benefit, they must comply with California laws regarding vacation pay.

My company employs a use it or lose it vacation policy. Is this legal?

No. Under California wage and hour law, vacation days are considered wages that have been earned, but not yet paid. Once an employee earns vacation time, it cannot be taken away or forfeited. If you lose your vacation time at the end of the year or upon termination, fill out the free case review form, as you may have been subjected to an illegal use it or lose it vacation policy.

Company policy states that employees earn ten vacation days after one year of employment. I was terminated after working nine months. Am I owed vacation wages?

Yes. Under California vacation law, you are entitled to 7.5 days of vacation pay.

Can my employer place a cap on my vacation days?

Yes. Your employer can limit how much vacation you earn without actually taking it. Your employer can establish a policy, for instance, that states you can only earn three weeks of vacation. From then on, you cannot earn any new vacation time unless you actually take days off. Essentially, an employer cannot stop you from earning more vacation, but they cannot take away what you have already earned. If you had your vacation time taken away, fill out the free case evaluation form on the right.