Vacation pay upon termination

[rickbecker]

California

Employer gave employees notice of plan to reduce pay by 30% in three weeks. Also given the option of accepting a buyout effective in 5 weeks. Employees taking the buyout will need to work the last two weeks at the reduced pay rate.

Buyout pay will apparently be at the current (higher) pay rate.

Employee has many hours of accrued vacation. HR states that vacation pay will be at the new (lower) pay rate.

I understand that CA law states: "earned and unused vacation must be paid to the employee at his or her final rate of pay." It does not seem fair that the employer could forcibly lower pay for two weeks and have this effect on vacation pay.

Please advise.

Thank you.

Rick Becker

 

[cbg]

If that's what the law says, then that's what the law says. You don't like the law, lobby your elected representatives to have it changed.

I agree it's not fair. Unfair and illegal are two different things.

California has been bending over backwards for years to entitle its employees. It has resulted in two effects that the state never intended; 1.) The state is broke and 2.) Some of the laws the state implemented as absolutes to benefit employees in a good economy are now working to the detriment of the employees in a poor one. Sort of a "no good deed goes unpunished" effect.

 

[swalsh411]

The employee would have the option of quitting prior to working any time at the new rate. Then all their vacation pay would have to be at the old rate. By agreeing to work at the new rate, they agree that their vacation pay will also be at the new rate.