Vacation, Paid Time Off and Holidays

Vacation and paid time off (PTO) are benefits that you can choose to offer your employees. Both are considered a form of wages that employees earn as they work. Under California’s wage and hour laws, vacation and PTO must accrue as time is worked and any unused balance must be paid at termination. The only exception is where the benefit is provided through an Employee Retirement Income Security Act (ERISA) qualified plan.

Vacation is typically used by employees to pay for time away from work for their own personal use and enjoyment.

PTO typically combines sick leave and vacation allowances into one block of time. ThePaid.