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Vacation Hours - California

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  • Vacation Hours - California

    I apologize if this has been posted before. Here's the scenario: An employee received a demotion and pay decrease, and before that, the employee had accrued 100 hours of vacation. Is the employee entitled to the difference of what the 100 hours were earned at before the decrease vs. what the hours equate to after the decrease?

    To expand the example: Let's assume the employee's hourly rate before the decrease was $50/hour and after the decrease it was $40/hour. If the employee had 100 hours of vacation earned at the $50/hour rate, is the employee entitled to $1000 (100 x $10 decrease change)?

    I expect that if the answer here is yes, then it would also work the other way - that is, for an employee who gets a pay increase who has accrued vacation. This actually may answer the question altogether. Thanks.

  • #2
    Under California law, once vaction time becomes earned it is considered wages and an employer cannot arbitrarily change the wage after it has been earned. Going forward, the employer can change the rate as long as the employee has been informed.
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