EmploymentQuestion 36 of 1605
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 §227.3Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)