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Is Holiday Pay Mandatory In California – California law does not mandate that employers provide paid overtime (PTO) or paid vacation days. However, if an employer provides vacation time as a company policy, then you
If your employer fails to pay you for your vacation time, you can recover compensation through a claim or lawsuit.
Is Holiday Pay Mandatory In California
Below, our California labor and employment law attorneys discuss the following frequently asked questions about vacation and overtime pay for California employees:
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Under the California Labor Code, an employer is not required to provide vacation time or paid vacation/paid time off (PTO).
Employers can also impose a waiting period for vacation pay if you’re new, as long as the policy is clearly stated. Vacation days are considered a form of pay.
If your employer provides PTO or vacation time, employers must treat the vacation time as earned wages. Vacation time doesn’t expire, even if you don’t use your vacation time. (This includes vacation time for part-time employees as well as full-time employees.)
An employer cannot take accrued vacation time as a penalty. An employer is also required to pay you accrued vacation time when you are fired or leave the company.
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Example: Valerie goes on vacation in December even though company policy prohibits employees from taking vacations during the holiday season. Her boss fires her and says she will lose the rest of her vacation time because she abused the policy. Valerie may be fired for violating the company’s vacation policy, but Valerie’s employer cannot take Valerie’s remaining accrued vacation time. Upon termination, Valerie’s employer must compensate her for her accrued and unused vacation days in her final paycheck. Time off as needed
If you are a non-exempt employee, an employer in California is required to provide meal breaks and rest breaks for a certain number of hours of work.
Under California labor laws, employers in California are required to provide you with sick leave. However, this is not the same as holiday pay. If you work at least 30 days a year, you are entitled to paid sick days.
Paid sick days shall not be less than one hour per 30 hours. For example, if you work 40 hours a week, over a 6-week period, you will receive at least 8 hours of paid sick time.
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Vacation time should be treated as earned wages. Once you have earned your vacation time at your employer’s rate of pay, you cannot lose vacation time.
In California, your vacation time cannot expire. Some employers may claim that vacation time is covered under a “use it or lose it” policy. However, taking vacation time “overdue” is a violation of California labor law.
Employers may also place a reasonable cap on how many benefits you can receive. This prevents you from earning vacation time by several hours or days.
An employer is also prohibited from taking earned vacation time to excuse you. An employer can change their company policy to remove the ability to earn vacation time. But they can’t take your vacation time back once it’s accrued.
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Example: Paula finds that her employees enjoy her taste in music. Paula confronts the employees and tells them they don’t deserve vacation time for such indiscipline. Paula may change company policy to no longer provide vacation time for employees. However, Paula cannot remove vacation time already earned by employees. 3. Can my employer limit my vacation time?
However, an employer cannot limit vacation time based on illegal discrimination. An employer’s leave policy cannot discriminate on this basis
Example: Russell – who doesn’t like Swedish people – knows that Saint Lucia’s Day is a popular Swedish holiday on December 13th. Russell has a vacation policy that says no one in his company can take the day off on December 13th, unless there are other restrictions on vacation days. Russell’s policy may violate California law. Since the company’s only black date falls on a Swedish holiday, the holiday policy may be discriminatory on the basis of national origin or heritage.
After a layoff or separation, an employer is required to pay you for any unused vacation time earned.
Use It Or Lose It Vacation Policy California
Under California labor law, vacation time is the same as earned wages. Once you get a vacation, you can’t lose vacation time.
Failure to pay for unused paid time after termination is failure to pay for hours worked. You have a legal cause of action to seek unpaid wages in court. This includes non-payment of wages
No. Since vacation pay is a form of salary, it is illegal for employers to have a “use it or lose it” vacation policy. You are still entitled to holiday pay even if you do not use your holiday by a certain date.
Yes, you can sue your employer in California court for unpaid vacation time. This is illegal for an employee
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In some cases, an employer’s policy on vacation may violate California labor laws. This may result in labor law violations for many employees. Successful unpaid vacation time class action lawsuits often involve the loss of compensation for paid time off or vacation time that is “expired.”
In addition, it is illegal for an employer to retaliate against you for exercising your rights under California employment laws. An employer cannot retaliate against you for a wage and hour violation. Firing you for filing an employment injury claim may be considered “wrongful termination.”
For questions about California’s vacation pay law and wage and hour laws or to discuss your case confidentially with our California labor and employment attorneys, contact The Shos Law Group.
Our California employment law firm has local employment law offices in Los Angeles, San Diego, Orange County, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay Area and several nearby cities.
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See our related article on California Paid Family Leave (PFL) and “Stress Leave” in California – Are Workers Entitled to It?. As we enter the holiday season, it’s a good time to review employer obligations to accommodate vacation time requests. Vacation and Holiday Season Pay Best Practices. This Friday’s Five covers five reminders for employees about holidays and pay:
There is no requirement that California employers provide time off for holidays (except for religious accommodations – see below). The California DLSE website states the following:
Working hours on holidays, Saturdays and Sundays are treated like working hours on other days of the week. California law does not require that an employer provide its employees with paid holidays, that it close its business on any holiday, or that employees be given a day off for any particular holiday.
2. California employers are not required to pay for time off for holidays, nor are they required to pay overtime if employees work on holidays.
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Similarly, there is no requirement that employers pay employees extra pay or “holiday pay” for work performed during holidays. Employers may voluntarily agree to pay employees additional pay for work required during holidays, but these conditions will be governed by policies set by the employer. Therefore, employers are urged to ensure that their holiday pay policies are clearly set out.
The California legislature has proposed bills that would require some employers to pay employees twice for Thanksgiving work, but none of those bills have been changed into law. For example, the “2016 Holiday Double Pay Act” proposed that an employer be required to pay regular wages to employees in retail and grocery store establishments at least twice on Thanksgiving Day. None of these efforts by the Legislature have succeeded (so far) in requiring California employers to pay additional “holiday pay.”
3. Employers must provide reasonable accommodations for employees who cannot work on certain holidays due to religious observances.
Employers should be aware of any religious observances of their employees because employers are required to provide reasonable accommodation to employees for religious reasons. A reasonable accommodation analysis is required on a case-by-case basis based on the type of business the company does and the accommodation requested by the employee. If the employer’s operations require employees to work on commonly recognized holidays, such as a restaurant, this should be communicated to employees in the handbook or other policies and set out the expectation that the required job performance Requires work during normal holidays.
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4. If an employer pays for vacation time during the holidays, the employer must not allow employees to earn paid vacation time.
If an employee pays for vacation during special holidays, if an employee leaves work before the holiday arrives, the employer does not need to pay the employee for the vacation day. But the employer’s policy on holiday pay should clearly state that this benefit does not accrue to employees and that they must work during certain holidays to receive holiday pay. Often employers will require employees to work days
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