EmploymentQuestion 36 of 690

An employee's accrued, unused vacation at termination must be:

a.Forfeited per company policy
b.Paid out at the final rate of pay
c.Carried over to next year only
d.Paid at a reduced rate

Explanation

California treats accrued vacation as earned wages. Upon termination (voluntary or involuntary), employers must pay all unused vacation at the employee's final rate of pay.

Law Reference: Labor Code §227.3

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