California Vacation Pay Calculator 2025
Calculate California vacation pay, PTO accrual, and paid time off with the latest 2025 labor laws. Includes vacation payout calculations, accrual tracking, and compliance with CA vacation policies for accurate employee benefits management.
California Vacation Pay Calculator
Calculate vacation accrual, PTO payout, and paid time off with CA labor laws
California Vacation Pay Laws (2025)
Vacation Accrual Rights
Earned Wages
Vacation time is earned wages in CA
Use It or Lose It
Cannot forfeit earned vacation
Payout Required
Must pay out all accrued vacation
Accrual Policies
Accrual Rate
Company determines accrual rate
Caps Allowed
Can cap at 1.75x annual accrual
Waiting Period
Can require waiting period
Payout Requirements
Final Pay Rate
Paid at final wage rate
Payment Timing
Due with final paycheck
All Accrued Time
Must pay all earned vacation
Important Distinctions
Vacation vs PTO
Traditional vacation time must be paid out. "Unlimited PTO" policies may not require payout if properly structured.
Sick Leave
Sick leave is separate from vacation. Accrued sick leave generally does not require payout at termination.
Personal Days
Personal days may or may not require payout depending on company policy and how they're classified.
Company Policies
Employer vacation policies must comply with CA minimums but can be more generous. Written policies are recommended.
California Vacation Pay Examples (2025)
Office Manager
Annual Salary: $65,000
Vacation Policy: 15 days per year
Years Employed: 3 years
Current Balance: 8.5 days
Vacation Pay Calculation
Technician (Hourly)
Hourly Rate: $28.50/hour
Hours per Week: 40 hours
Vacation Policy: 80 hours per year
Current Balance: 32 hours
Vacation Pay Calculation
Senior Employee
Annual Salary: $95,000
Vacation Policy: 20 days per year
Years Employed: 8 years
At Termination: 12.3 days accrued
Termination Payout
Healthcare Worker
Annual Salary: $78,000
Vacation Policy: 18 days per year
Years Employed: 5 years
Vacation Cap: 31.5 days (1.75x annual)
Capped Vacation Calculation
Frequently Asked Questions About California Vacation Pay
Yes, California law requires employers to pay out all accrued vacation time when you leave your job. Vacation time is considered earned wages that vest as they accrue, so you're entitled to payment at your final rate of pay.
No, California prohibits "use it or lose it" vacation policies. Once vacation time is earned, it cannot be forfeited. However, employers can cap vacation accrual at reasonable levels (typically 1.75x the annual accrual rate).
Vacation pay is calculated using your current rate of pay (not the rate when vacation was earned). For salaried employees, divide annual salary by 260 work days. For hourly employees, multiply accrued hours by current hourly rate.
Vacation time must be paid out at termination, while sick leave generally does not. Vacation time vests as earned wages, but sick leave is typically for health-related absences only and doesn't carry the same payout requirements.
Important California Vacation Pay Information
California treats vacation time as earned wages that vest as they accrue. Employers cannot implement "use it or lose it" policies and must pay out all accrued vacation time upon termination. Vacation pay must be calculated at the employee's final rate of pay and included in the final paycheck. Employers may cap vacation accrual at reasonable levels (typically 1.75 times the annual accrual rate) and may require waiting periods of up to 90 days. This calculator provides estimates based on current CA labor laws and should not be considered legal advice. Consult the California Department of Industrial Relations for official guidance.