The State of California Labor Commissioner’s
Office supplied the following information:
California
law does not require paid vacations, but when it is provided, it is considered
the same as wages and, therefore, once it is earned it cannot be forfeited. If
an employer furnishes vacation benefits, the employee earns and vests in the
vacation benefit on a daily basis. The employer's policy, however, can
determine the amount of vacation earned and when the vacation time may be
taken. If an employee terminates his or her employment, all vacation pay
earned, but not yet taken, must be paid to the employee at the time of the
termination. "Use it or lose it" or forfeiture vacation pay
requirements are not legal. For example, an employer's policy can provide that
employees earn one week of vacation the first year of employment, but that
vacation time cannot be taken until after the employee has completed one year
of service. However, if the employee terminates his or her employment prior to
that first anniversary date, the employer must pay the accrued vacation earned
prior to termination. The employer cannot require that vacation pay be
forfeited if the employee terminates. However, the employer can establish when
employees take vacation while they are employed.
There is no
legal requirement to provide employees with paid holidays. However, if you
grant paid "personal" or "floating" holidays, they are
treated in the same manner as vacation pay. Other paid holiday requirements are
dependent on the employer's own policy.
Unless
there is a contractual obligation or company policy to do so, it is not a legal
requirement to pay overtime or premium pay for hours worked on a holiday.
Most
California employees participate in the State Disability Insurance Plan (SDI),
which they pay for through payroll deduction. Employers are required to give
newly hired employees a copy of the SDI brochure, as well as provide claim
forms when an employee is eligible to apply for benefits. Copies of the brochure
and claim forms can be obtained from the Employment Development Department
(EDD). There is no legal requirement for employers to provide sick pay benefits
in addition to the mandated SDI benefits.
If an
employer provides sick pay benefits in addition to the mandated SDI benefits,
the benefits are governed by the employer's own policy or the terms of the
Health and Welfare Plan that provides those benefits. An exception to this is
when sick pay is added to vacation benefits to provide a combined benefit, such
as a "time off" plan. Under these circumstances, the combined benefit
would be treated in the same manner as vacation pay. (See also
"Vacation.")
There is no
requirement under California law to provide medical and/or life insurance
benefits. However, if medical benefits are provided, the employer must give a
15-day notice if the benefits are to be discontinued. Federal law governs
medical and life insurance benefits.
For additional information, see
Labor Code Section 2806 and contact the U.S. Department of Labor.
All
California employers must provide mandated workers' compensation benefits to
employees who are injured or become ill on the job. An employer must provide a
claim form to an employee within 24 hours of becoming aware of the employee's
injury or illness. Specific details concerning workers' compensation benefit
requirements can be obtained from your Workers' Compensation Insurance carrier
or from the local office of the Division of Workers' Compensation. There are
significant criminal and civil penalties for employers that do not have
Workers' Compensation Insurance or that are not authorized by the State to be
self-insured.
For additional information,
contact your Workers' Compensation Insurance Carrier.
There is no
requirement under California law to provide pension benefits. If employers
provide pension benefits, federal law governs them.
For
additional information, contact your benefits provider.