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CA Vacation Carryover

Hi, If I have a company with an office in California and the Home HR office is in PA and I have employees who ended the year with 120 hours of unused vacation time, is it required by law that our company carry over this vacation time to the next year or can I cap an amount to carry over to be maximum of 40 hours?

California employment laws are the most extensive in the country. All California employees are subject to wage and hour laws including the administration of vacation time.

Though there is no legal requirement for employers in California to provide paid vacation time to employees, if an employer does have an established policy or practice of offering paid vacation time then there are certain restrictions imposed on the administration of such a policy.

Under California law, earned vacation time is considered wages, and vacation time is earned as labor is performed. An employer can place a reasonable cap on vacation benefits that prevents an employee from earning vacation over a certain amount of hours. However, an employer is not permitted to cap the amount of vacation time an employee can carry over in to the next plan year. An employee cannot lose his earned vacation time. It must be either paid out to the employee or carried over to the next plan year.

This entry was posted on Sunday, January 17th, 2016 at 2:40 pm and is filed under
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