Can we change our vacation policies as a result of the employees not using their time?

This is a tricky question. Generally, however, employers do have control over their vacation policies subject to certain rules. Employers have a few ways to address their vacation policies while staying within compliance.

California law allows employers to set reasonable caps on vacation accruals. Accrual caps mean that the employee no longer accrues vacation time while they are at the cap.

Although there is no set standard on what a reasonable cap may be, commonly caps meet this requirement when they are no less than 1.5 to 2 times the annual rate for employees. This is because employees need to be provided a reasonable opportunity to take all the