What are my rights if my California employer has a "use it or lose it" vacation policy?

In California, "use it or lose it" vacation policies that require you to forfeit accrued vacation time are illegal. Your earned vacation time is considered a form of wages that cannot be taken away once you have earned it. Here are the steps to take if you believe your employer has an unlawful policy: Step 1: Review Your Company's Written Vacation Policy Request a copy of the employee handbook or your employer's official written policy on vacation time. Look for any language that states you will forfeit or lose accrued vacation days at the end of the year or on another specific date. Step 2: Gather Your Pay Stubs California law requires employers to list your available paid time off balance on your pay stubs. Collect your recent pay stubs and check if your vacation balance has ever been reduced without you taking time off or being paid for it. Step 3: Discuss the Issue with HR or Your Manager Politely inform your employer or Human Resources department that California law prohibits "use it or lose it" policies. They may not be aware of the law and could correct the error. Keep a written record of this conversation, such as a follow-up email summarizing your discussion. Step 4: File a Wage Claim If your employer refuses to restore your forfeited vacation time or pay you what you are owed, you can file a wage claim with the California Labor Commissioner's Office, also known as the Division of Labor Standards Enforcement (DLSE). You can start the process on their website: dir.ca.gov. You generally have up to three years from the date the wages were due to file a claim. Important details and nuances: While employers cannot take away earned vacation, they can place a "reasonable cap" on accrual. This means that once your vacation balance reaches a certain limit (often 1.5 to 2 times your annual allowance), you will stop earning more vacation time until you use some. This is legal, as it doesn't take away what you've already earned. Upon termination of employment, your employer must pay you for all unused, vested vacation time at your final pay rate. Warnings and limitations: This information applies to traditional vacation policies. It may not apply to unlimited PTO policies, which are treated differently under the law. Employer retaliation for asserting your wage rights is illegal, but you should document all communications carefully. This is general information and does not constitute legal advice. For complex situations, especially those involving potential retaliation or large amounts of unpaid wages, you should consult with a qualified California attorney.