Is Use It or Lose It Vacation Illegal in California?

By Anna Duncan

Are you an employee in California who is worried about your unused vacation days? You may be wondering if the “use it or lose it” policy is legal in California. The answer is a bit complicated, but let’s break it down.

Understanding California Law

In California, employers are required to provide their employees with paid vacation time. According to California law, vacation time is considered wages that have already been earned by the employee. This means that the employer cannot take away your earned vacation time and cannot force you to forfeit it.

Use It or Lose It Policy

A “use it or lose it” policy means that any unused vacation time at the end of the year will not carry over to the next year. In other words, if you do not use your vacation time within a certain timeframe, you lose it. This type of policy can be concerning for employees who have accumulated a significant amount of unused vacation time.

Fortunately, in California, this type of policy is generally illegal. Employers are required to allow their employees to carry over unused vacation time from one year to the next. However, there are some exceptions.

Exceptions

There are two main exceptions to the “use it or lose it” policy in California:

  • Employers may limit the amount of accrued vacation time an employee can have at any given time.
  • Employers may offer a buyout option where employees can choose to receive payment for their unused vacation time instead of carrying it over.

What Should You Do?

If your employer has implemented a “use it or lose it” policy and you believe that it violates California law, you should speak with an employment lawyer who can help you understand your legal rights. You may also want to bring up your concerns with your employer and HR department.

Conclusion

In California, the “use it or lose it” vacation policy is generally illegal. Employers are required to allow their employees to carry over unused vacation time from one year to the next, with some exceptions. If you believe that your employer is violating California law, seek legal advice and speak with your employer.