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This is an irrefutable fact of life that not even the strictest of employers can argue with. As long as the employer’s decisions are not discriminatory based on race, sex, religion, disability or another protected class under federal or California law, the employer is free to set the parameters in which vacation is scheduled. Copyright © 2020 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. Read More: California Law: Paid Time Off. Happier, healthier employees usually mean greater productivity and employee retention for employers. An employer is not required to provide paid-time-off under California vacation law. Under a “use-it-or-lose-it” policy, accrued vacation must be used by a certain date – usually by the end of the year – or it is forfeited. If an employee earns vacation time in California, it is as much his property as are earned but unpaid wages. Yes. "Even if there has been a lot of collateral damage." Some employers also offer a set number of “personal days” or “floating holidays” each year. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to technology The following types of leave are provided for eligible … Sick leave is another matter. Vacation Time Paid Out on Termination. This document is intended to answer any questions small employers might have about California’s paid sick leave law and its effects on small business owners and their workers. This article will answer common questions regarding California’s vacation and PTO laws. Because vacation is considered earned wages, an employer may be liable for “waiting time penalties” for failing to timely pay out vacation with the final paycheck. The money comes from disability insurance taxes the workers pay. Employees have the right to use accrued paid time off, including vacation time, personal leave, or comp time during jury … The amount of paid time off/vacation time that an employee receives depends on the agreement they have with their employer. California law allows employees to take time off for vacation, sick days, attending children’s school functions, pregnancy, … However, when sick days are included in a general PTO policy, all of the PTO is treated like vacation and must be paid out on separation. In general, employers can decide when and how employees may schedule their time off from work. However, if an employer does have an established policy, practice, or agreement to provide paid vacation, then certain restrictions are placed on the employer as to how it fulfills its obligation to provide vacation pay. California was the first state to let people take up to 12 weeks off from work to care for a family member while still getting paid a portion of their salary. Employers can also set aside certain “blackout” dates during which no employees may take vacation, such as the holiday season for a retail business or the tax season for an accounting firm. California officially considers paid time off to be a type of deferred wage received in exchange for services performed. First, the bad news. This means after an employee reaches a certain number of days, they stop accruing PTO. However, employers do commonly have policies and plans that provide such compensation. If an employee quits with less than 72 hours’ notice, the final paycheck is due within 72 hours of the time of quitting. (To learn the rules on eligibility and accrual, see our article on California paid sick leave). If the employee has paid sick leave available, the employer must provide such leave and compensate the employee under California paid sick leave laws. 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