Unlimited vacation policies place no maximum limit or cap on vacation time, and employees can take time off whenever they like provided they still successfully complete all of their tasks - but employees also don’t accrue vacation time, meaning that theoretically, there’s no “vesting” or pay out of unused time when the employment relationship ends as is required by Labor Code section 227.3 under normal accrual vacation policies. EF Intercultural Foundation, Inc., 47 Cal.App.5th 243 (2020)). But it also went out of its way to say there might be some circumstances under which unlimited policies are valid and provided some principles employers can apply to their policies ( McPherson v. A recent California Court of Appeal decision gives employers some guidance on these policies - it held that an employer’s supposed “unlimited” vacation policy wasn’t unlimited it actually had an implied cap, and the employer violated the Labor Code when it failed to pay out the unused vacation. In recent years, “unlimited” vacation policies have gained traction in California, becoming increasingly popular for providing employees with limitless paid vacation or paid time off (PTO). The Brinker Decision: Analysis and Guidance.Four Ways Employers Can Combat Workplace Gambling.Employee Handbook: A Workplace Essential.Five Things Employees Think They’re Entitled to… But Aren’t.The Top 10 Things Employers Do to Get Sued.10 Things You Might Not Know About Sexual Harassment.The Who, What, When and How of Mandatory Paid Sick Leave in California. ![]()
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