Can an employer legally withold accrued vacation pay if an employee quits without giving proper notice?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can an employer legally withold accrued vacation pay if an employee quits without giving proper notice?

Our company handbook reads: ” Upon termination of employement, associates who provide a written two week advance notice and work the complete two weeks will be paid their unused vacation time. However, forfeiture of unused vacation time may occur where an assocaite has been dismissed for cause, fails to provide notice of voluntary termination, or provides notice, and then does not complete the full extent of said notice.” Is this a legal practice in CA? Also, if the employer chooses to terminate after notice is given, are they obligated to pay the accrued vacation time?

Asked on December 3, 2010 under Employment Labor Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Pursuant to CA law, unless otherwise provided for by a collective bargaining agreement, whenever the employment relationship ends, for any reason whatsoever, and the employee has not used all of his or her earned and accrued vacation, the employer must pay the employee at his or her final rate of pay for all of his or her earned and accrued and unused vacation days.  Labor Code Section 227.3.  Since vacation benefits are considered wages, such pay must be included in the employee's final paycheck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption