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Understanding Your Right to Paid Time Off in California

California law treats different types of paid time off (PTO) differently. All employers are required to provide a minimum amount of paid sick leave to employees. However, vacation time or general PTO is not required by law. When an employer chooses to offer vacation time, it is treated as earned wages and comes with certain legal protections.

For employers who provide vacation or general PTO, California law includes the following requirements:

  • Employers generally cannot revoke PTO or vacation time that employees have already accrued.
  • Unused vacation time must roll over from year to year, though employers may set reasonable caps on the total amount that can accrue.
  • If an employee leaves or is terminated, any unused, accrued vacation time must be paid out as part of final wages.
  • If vacation or PTO is included in an employment contract or handbook, employers are generally obligated to honor the terms outlined.

Understanding these rules can help you assess whether your employer’s PTO practices align with California’s requirements. If you believe your vacation pay or PTO benefits have not been handled properly, you may benefit from consulting an employment attorney.

Understanding these rules can help you assess whether your employer’s PTO practices align with California’s requirements. If you believe your PTO benefits have not been handled properly, you may benefit from consulting an employment attorney.

Vacation Laws in California and “Use It or Lose It” Policies

California vacation policies offer employees certain protections under state law, treating accrued vacation time similarly to earned wages. While employers have some flexibility in managing vacation policies, they generally cannot enforce a “use it or lose it” policy.

A “use it or lose it” policy requires employees to use vacation days by a certain date or forfeit them. In California, this practice is typically prohibited.

However, employers may establish reasonable caps that limit how much vacation time employees can accrue. Any such cap must be applied fairly, clearly communicated, and designed to prevent unlimited accumulation—not to withhold earned vacation benefits.

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Minimum PTO Requirements in California

California employers are not required to provide vacation time or general paid time off (PTO). However, they are legally required to provide:

  • Paid sick leave — at least 40 hours or 5 days per year for employees who work 30 or more days in a year (state minimum; local ordinances may require more).

In addition to PTO and sick leave policies, California law also requires:

  • Meal breaks — usually a 30-minute unpaid meal break for shifts over five hours.
  • Rest breaks — typically a 10-minute paid rest break for every four hours worked.

Note: Meal and rest breaks are separate from PTO and sick leave benefits.

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The Average PTO in California

California law does not set a required amount of vacation or general paid time off (PTO). Employers must provide a minimum amount of paid sick leave, but additional vacation and personal leave benefits vary widely by industry, role, and location.

National data from the U.S. Bureau of Labor Statistics shows full-time employees in the private sector typically receive:

  • 11 days paid vacation after one year
  • 15 days paid vacation after five years
  • 18 days paid vacation after 10 years

Accruing and Using Vacation Time: What You Need to Know

California employers have flexibility in determining how employees earn vacation or other paid time off benefits. Some companies offer a set amount of PTO per year, while others allow employees to accrue time off gradually with each pay period. Many employers implement waiting periods before new employees begin accruing vacation benefits.

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Your Options if PTO or Vacation Wages Are Unpaid

If you believe your employer has failed to pay wages owed for accrued vacation time, you may have the option to file a wage claim or take legal action. Filing a wage claim through the California Department of Industrial Relations (DIR) is one possible avenue for resolving unpaid PTO or vacation wages.

The California Labor Commissioner’s Office will review the claim and determine whether wages or benefits may be owed. In most cases, wage claims related to unpaid vacation or PTO must be filed within three years of the alleged violation.

If you are considering legal action, you may benefit from consulting an employment attorney who can help assess your specific situation and explain your potential options.

Why Employees Consult Colby Law Firm for PTO and Vacation Matters

At Colby Law Firm, we assist employees seeking guidance on PTO and vacation wage concerns. Our team has extensive experience helping workers understand their rights, evaluate their options, and take steps to address unpaid wages when appropriate.

We are committed to providing clear, knowledgeable support to employees navigating complex wage and hour matters, including PTO and vacation pay disputes.

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Colby Law Firm is here to help. We’re happy to provide you with a free case evaluation and discuss next steps with you. Contact us today for a free case evaluation.

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Aaron Colby is a California employment lawyer who knows how to resolve disputes. After 15 years representing companies, he started Colby Law Firm to represent employees. Aaron’s perspective and experience from being “on the other side” gives him an edge. Aaron brings his practical, focused, and relentless approach to helping employees protect their rights.

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Aaron Colby
Lead Attorney and Founder Colby Law