What is the name of your state? CA: An employee recently resigned from our firm, and was paid accrued vacation in final paycheck. Problem: Employee had dual-responsibilities and was paid separate hourly rates per function (one hourly rate for regular work duties, second higher hourly rate for consultation duties). Accrued vacation time has always been paid at lower rate; employee is insisting that pay-off occur at higher hourly rate. What's correct and legal?