Are employers allowed to reduce an employee’s wages while they are on vacation?
No, employers are not allowed to reduce an employee’s wages while they are on vacation in California. According to the California Department of Industrial Relations, an employee must be paid the same wages regardless of whether they are taking a vacation. This means an employee is entitled to the same wages for vacation time as for other hours worked. Additionally, if an employee works extra hours during a pay period, the extra hours worked must be compensated at the same rate. Employers are also forbidden from deducting the cost of vacation time from an employee’s wages or pay. In California, employers must pay all wages due to an employee on or before the next regularly-scheduled pay period after the wages are earned. This includes wages earned while the employee is on vacation. If an employer fails to pay wages on time or deducts wages or pay during vacation time, they could face serious legal consequences.
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