Header 4

California Court of Appeal Addresses Whether There are Limits to Vacation Payout Requirement for "Unlimited" Vacation Policies

Apr 07, 2020

On April 1, 2020, a California Court of Appeal issued a long-awaited decision relating to the use of so-called “unlimited” vacation plans. In McPherson v. EF Intercultural Foundation, Inc., the court ultimately did not decide the viability of such plans under California law, but instead held California law requires payout of vacation to certain employees under the fact-specific issues in this case.1 With respect to the ability of California employers to offer “unlimited” vacation plans to employees without the potential need to pay out this time when an employee separates from employment, the court stated, "[w]e by no means hold that all unlimited paid time off policies give rise to an obligation to pay 'unused' vacation when an employee leaves." (Read More)

Article By: Adam Fiss, Maria Harrington, and Sebastian Chilco Littler

« View all News