Human Resources FAQ

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• Does an Employer have to approve an employees request for paid time off if they have any available?

No. An employer can deny a request for paid time off if it would affect the smooth operation of the business. MMC suggests that language addressing this situation be place in the employee handbook.

• Do You Have to Pay Out Sick Upon Termination?

No. An employer is not required to pay unused sick time at termination, but they employers are free to pay unused sick time if they choose to do so.

• Do You Have to Pay Vacation or PTO at termination?

Yes. Vacation/PTO time is considered a vested benefit in California and once the time has been earned by the employee it can never be lost. The employees must be paid any earned and unused Vacation/PTO at the time of termination.

• Are there any special rules for floating holidays?

California takes the position when an employer gives an employee paid time off for whatever reason the employee wants that time is considered to be vacation time and it must be treated the same as vacation time.

• What are the rules regarding when termination pay is due?

When the employer has made the decision to terminate employment final pay is due to the employee immediately. If the employee decided to end employment and has provided 72 hours notice final pay is due when they leave on their final day of employment. If the employee provides less than 72 hours notice, final pay is due to the employee no later than 72 hours from the time they provided notice. The 72 hours are calendar hours.

• Can I let an employee go today if they just gave 2 weeks notice?

Yes. However, if an employer does not let an employee work out the notice period the resignation becomes a termination and this may allow the employee to receive unemployment benefits when they may not have been eligible based on the resignation.

• What are the Overtime Rules?

Employers in California must pay their employees time-and-one-half the employee’s regular rate of pay for all hours worked beyond 8 in a single workday and the first eight hours worked on the seventh consecutive day worked in a single workweek. Employer’s must pay double the employee’s regular rate of pay for all hours worked beyond 12 in a single day and all hours worked beyond 8 on the seventh consecutive day worked in a single workweek.

• If an employee works unauthorized OT do I have to pay?

Yes. If an employee works overtime whether authorized or unauthorized the overtime rules apply. Working overtime without authorization is a performance issue for which the employee should receive counseling.

• Can employee’s work more than 8 hours in a day and not receive overtime?

Yes. There are some very limited exceptions this may happen. Those exceptions are when the employee has requested Make Up Time or when the employer has an Alternative Workweek in place.