Calculating Accrued Vacation

When preparing a final paycheck for an employee who is being terminated or voluntarily leaving the company, is the company responsible for paying them only for the vacation time they have available or also for accrued time for next year? We have it set up where vacation time is based on the employee's anniversary date. The employee in question is at our California branch.


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  • I do not know how it is in California, but I believe that it would depend on what your employee handbook stated. At one company, we paid out accrued vacation for the next year. At others, however, we only paid out what the employee had left. If your handbook states that the employee will be granted this vacation time on their anniversary date, wouldn't this mean they would have to work until their anniversary date to receive this vacation time. I don't feel that an employee should receive time he/she has not earned. I hope this helps you a little.

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