When employees are laid off, they are paid for vacation time that they
have accrued but have not used. Typically, annual salaries are
divided by the number of working days in a year, and the employer pays
the daily rate times the number of vacation days due.
This issue is complicated when employees salaries are reduced prior to
their lay-off. So my question is, what does California law state, if
anything, with regards to whether the employer is obligated to pay
vacation days at the salary rate whilst those days were accrued? Or
is it simply that the employer pays the daily rate at the salary rate
in effect at termination? In the case of an unfortunate employee that
faced a 60% reduction in salary, and then got canned with a lot of
unused vacation, it makes a difference. As it does for the frugal,
Thus, your help in finding reference to the employment code would be
Clarification of Question bygingko-ga
Please note, the fact that this employer does pay for unused vacation
days upon termination is not in question.