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Vacation Pay

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  • Vacation Pay

    I'm employeed in California. I have been on Family Medical Leave since November 16, 2004. On November 12, 2004 prior to my going on leave my salary was significantly reduced due to budget issues within my company. I recently requested to have my vacation hours paid out to me while I'm on leave, per our company's policy. Prior to going on leave I had accumulated 75 hours of vacation time, since my leave I have of course accrued no hours. I want to know if my vacation hours should be paid out according to the rate at which I was earning when I accrued them or the rate that I was reduced to? I have attempted to contact my employer and they will not respond. It was my understanding that the vacation hours I accrued prior to my salary reduction should be paid out at the rate I was earning when I accrued the hours, not the rate that I was reduced to. If I'm correct and I'm not paid at my prior salary rate then what is my recourse to obtain the money that has been withheld?

  • #2

    Your vacation is paid at your last rate. According to the state's website:

    In contrast to how vacation pay may be earned, the calculation of vacation pay for terminating employees (a quit, discharge, death, end of contract, etc.) who have earned and accrued and unused vacation on the books at the time of termination must be prorated on a daily basis and must be paid at the final rate of pay in effect as of the date of the separation.

    You can read more about vacation payments at:
    Lillian Connell

    Forum Moderator


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