Perspective
Aug. 10, 2011
Vacation clarification: New definition may affect employee compensation
What counts as paid "vacation" that vests as it is earned and cannot be forfeited under California law? By D. Gregory Valenza of Valenza Shaw
What counts as paid "vacation" that vests as it is earned and cannot be forfeited under California law? The distinction between leave that is and is not deemed vacation is significant. The law generally requires payment of unpaid wages, including unused, earned vacation pay, on the employee's termination date. Untimely payment of wages can result in significant "waiting time" penalties under Labor Code Section 203.
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