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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: California Employment Law
Satisfied Customers: 118201
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Questions regarding accrued vacation pay in California only

Customer Question

Questions regarding accrued vacation pay in California only entitled toif a person accrues 40 hours of vacation pay at $20/hour ($800) and then resigns that position and takes a position in the same company at $10/hr, are they entitled to $800 of vacation time (or cash if they quit) or are they only entitled to $400 of vacation pay (40 hours at their new rate of $10/hr).And should vacation pay have been paid out when they resigned the position in which it was earned since CA laws requires vacation to be paid out at termination.
Submitted: 1 year ago.
Category: California Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Accrued but unused vacation pay in CA is considered wages, but it is paid out at the current rate of pay when the employee is terminated or resigns their employment. The law does not say the employer has to keep the pay at the same rate as when it was earned and in fact if the employee remained employed and took the vacation they would only be paid at their current rate of pay for that vacation time.