California · Labor Code

Cal. Lab. Code § 227.3

In short

Vested but unused vacation must be paid out as wages at the final rate when employment ends, and a contract or policy may not make vested vacation disappear at termination.

A summary by Savion of the text below. The text governs.

Text of Cal. Lab. Code § 227.3

Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination. The Labor Commissioner or a designated representative, in the resolution of any dispute with regard to vested vacation time, shall apply the principles of equity and fairness.

History. Amended by Stats. 1976, Ch. 1041.

Quoted from the official publication, as retrieved on 2026-10-25. For the current text and any later amendment, see the official source.

Answers that rely on this section

California final paycheck law: when it's due and the waiting time penaltyAll questions on California work and employment →

Nearby in the Labor Code

On the official site; these sections do not have a Savion page yet.

  • § 227.5
  • § 227
  • § 226.3
  • § 226.2
  • § 226.4
  • § 226.1