Q & A – My employee in California will leave the company with 20 hours of vacation time still on the books. Must I pay this out to him?

Q: My employee in California will leave the company with 20 hours of vacation time still on the books. Must I pay this out to him?

A: Yes, unless otherwise provided for by a collective bargaining agreement, whenever a contract of employment or employer policy provides for paid vacation and an employee leaves without using all of said vacation, all vested and earned vacation time must be paid to the employee as wages at their final rate of pay.