My employer has a "policy" that you cannot carry over more than a certain number of vacation days from one year to the next. So, for example, if I have 8 vacation days at the end of the year, and I can only carry over 5, I lose 3 days. They say they will not pay me for these days. Now, in the state of California, I'm certain this is an illegal practice. This Department of Labor Standards Enforcement page says:
And, they think that because I signed the handbook with this "policy" in it (wasn't aware of this law then), I do not have a right to that vacation. Basically since I signed it, I gave up that right. Well, since I signed the paper, I read a bit, and found out what they are doing is illegal, and I've called them on it. Now, even though I signed that paper, I can't waive my right to my earned pay. I found a court case, Henry v. Amrol, Inc.(1990) which stated that even though an employee signs a policy which contains illegal sections, they do no waive their rights. Also, Civil Code 3513 states that "...a law established for a public reason cannot be contravened by a private agreement." Labor Code has been determined to serve a public purpose.
So, the two owners of the company and my immediate supervisor want to have a meeting with me on this issue since I've said I will not sign the new ammendment they have for the employee handbook (they changed other stuff), until this policy is changed. I've heard through the grapevine that the owners insist they are right, and they do no have to pay me for this vacation, and will keep the policy in place.
I just want to get people's opinion on this. It looks pretty cut-and-dry that I am correct here. Do they even have a leg to stand on?
Q. My employer?s vacation policy provides that if I do not use all of my annual vacation entitlement by the end of the year, that I lose the unused balance. Is this legal?
A. No, such a provision is not legal. In California, vacation pay is another form of wages which vests as it is earned (in this context, "vests" means you are invested or endowed with rights in the wages). Accordingly, a policy that provides for the forfeiture of vacation pay that is not used by a specified date ("use it or lose it") is an illegal policy under California law and will not be recognized by the Labor Commissioner.
And, they think that because I signed the handbook with this "policy" in it (wasn't aware of this law then), I do not have a right to that vacation. Basically since I signed it, I gave up that right. Well, since I signed the paper, I read a bit, and found out what they are doing is illegal, and I've called them on it. Now, even though I signed that paper, I can't waive my right to my earned pay. I found a court case, Henry v. Amrol, Inc.(1990) which stated that even though an employee signs a policy which contains illegal sections, they do no waive their rights. Also, Civil Code 3513 states that "...a law established for a public reason cannot be contravened by a private agreement." Labor Code has been determined to serve a public purpose.
So, the two owners of the company and my immediate supervisor want to have a meeting with me on this issue since I've said I will not sign the new ammendment they have for the employee handbook (they changed other stuff), until this policy is changed. I've heard through the grapevine that the owners insist they are right, and they do no have to pay me for this vacation, and will keep the policy in place.
I just want to get people's opinion on this. It looks pretty cut-and-dry that I am correct here. Do they even have a leg to stand on?
