If an employee is terminated before completing a 90-day probationary period, do we have to pay accrued vacation?

Yes, in most instances you are required to prorate vacation even when an employee does not complete the probationary period. It depends on whether a vacation policy exists and how the policy is written.

Employers in California are not required to provide vacation for their employees. If an employer has not established a vacation policy, vacation is not owed.

Once a policy is established, an employer must comply with Labor Code Section 227.3 and prorate any vested vacation time at termination of employment. The policy determines when vacation is actually earned and vested. When a vacation policy provides vacation accrual on