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First, there is no law that requires a California employer to pay its employees for vacation time, or to have a paid time off (PTO) policy. However, if an employer has agreed to provide, or pay, vacation time or PTO, it is considered "wages" and the following rules apply:
The California Department of Labor Standards and Enforcement maintains that a Paid Time Off policy must adhere to the same rules as a vacation policy. In Summation, Vacation time and "paid time off" is earned on a day-by-day basis; such days cannot be forfeited, the number of earned and accrued vacation / paid time off days can be capped, and if an employee has earned and accrued paid time off days that have not been used at the time the employment relationship ends, the employee must be paid for these days.
Tags: California Law on Vacation Time Pay
Posted In: Employment Law News
Blog Categories:Business Law Bulletin
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Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.