Following Owen v. Macy’s, Inc. (2009) 175 Cal.App.4th 462, this decision holds that when an employer’s policy clearly states that an employee does not begin to earn vacation pay until after a full year’s employment, the employer does not owe an employee any vacation pay if employment is terminated in less than a year after the date of initial employment.  Lab. Code 227.3 does not provide to the contrary.  It only requires payment of accrued vacation pay at the time of termination of employment.  If no vacation pay has accrued under the employer’s clear policy, none need be paid.

California Court of Appeal, Fourth District, Division 1 (Haller, J.); July 28, 2017; 2017 WL 3203265