We were informed that only half of our earned vacation time would be rolled over at the end of the year. Is this legal in California?

Our company made changes in how we accrue our vacation time but has now made it to where whatever amount of time is left at the end of the year, only half would roll over to the following year. They stated that this was made so that employee schedules their vacation accordingly during the year.

1 answer  |  asked Apr 5, 2016 11:28 PM [EST]  |  applies to California

Answers (1)

Joe Rose
This sounds like a use-it-or-lose-it policy, which is not permitted under California law. The company can set a maximum vacation accrual cap over which employees cannot continue to accrue vacation leave. But once employees accrue vacation, it cannot later be taken away. (There are sometimes exceptions in a union environment with a collective bargaining agreement that provides a different method.)

posted by Joe Rose  |  Apr 6, 2016 01:02 AM [EST]

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