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May20

Negative vacation balance

What is California law about negative vacation balance? Are employers allowed to recoup from final check?

Under California law vacation benefits are a form of wages. Allowing employees to take their vacation time prior to actually earning it is considered an advance on wages. Thus, if an employee takes an advance on his vacation time and then separates from the employer before the time has been earned or accrued, it’s considered to be an overpayment of wages. And, under California law, an overpayment of wages cannot be recouped from an employee’s due wages. Deductions from an employee’s final paycheck for debts owed to the employer are strictly prohibited.

This entry was posted on Saturday, May 20th, 2017 at 7:12 pm and is filed under
Benefits, Compensation.
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