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Employment law attorney Neil Shouse of Shouse California Law Group explains whether California employers are required to cash out unused vacation time when an employee leaves their job. More info at https://www.shouselaw.com/ca/blog/cas... or call 1-877-SUE-MY-BOSS for a free consultation. Cashing Out Vacation Time in California | Shouse California Law Group In California, vacation time is considered earned wages, which means it belongs to the employee. When an employment relationship ends, whether by resignation, termination, or even retirement, employers are legally required to pay out any unused vacation time in the employee’s final paycheck. This rule is part of California’s labor laws, which treat vacation pay as a form of deferred compensation. This rule applies to all types of vacation plans, including traditional vacation time and paid time off (PTO) policies. However, it’s important to note that “use-it-or-lose-it” policies, where vacation time expires if not used by a certain date, are illegal in California. Employers cannot take away vacation time you’ve already earned. If your employer refuses to pay out your unused vacation time, they could face penalties under California labor laws, including waiting time penalties, which can amount to up to 30 days of the employee’s daily wages. You may also have the right to file a wage claim with the Labor Commissioner’s Office to recover what you’re owed. At Shouse California Law Group, we help employees enforce their rights and recover unpaid wages, including vacation pay. If you or a loved one has had your rights violated by your employer we invite you to contact us at Shouse Law Group. We can provide a free consultation in office or by phone. We have local offices in Los Angeles, the San Fernando Valley, Pasadena, Long Beach, Orange County, Ventura, San Bernardino, Rancho Cucamonga, Riverside, San Diego, Sacramento, Oakland, San Francisco, San Jose and throughout California.