The rules regarding the information employers must provide to employees in wage statements is a jumbled mess. However, at least one thing is now for certain – Employers are not required to include the monetary value of accrued paid vacation time in employee wage statements unless and until a payment is due at the termination of the employment relationship.
In Soto v. Motel 6 Operating, L.P. (October 20, 2016) the First Appellate District of the California Court of Appeals decided that the Labor Code does not require detailed information on accrued paid vacation time on employee wage statements, except at termination of employment. The Court of Appeals reasoned,
If an employer is not required to compensate an employee for unused vacation in a particular paycheck, there is no statutory duty to identify the monetary amount of the accrued vacation balance.
The Soto case provides another example of how essential qualified legal counsel is should you be an employer.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.