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Collective Bargaining Exception to California Labor Code Section 227.3 (Right to Immediate Vacation Time Payment Upon Termination) Requires Clear and Unmistakable Waiver

In Labor Code Section 203, Labor Code Section 227.3, Termination Pay (Labor Code section 201), Vacation, Waiting Time Penalties on May 2, 2013 at 4:11 pm
Collective Bargaining Bill Signing

Collective Bargaining Bill Signing (Photo credit: Office of Governor Patrick)

The Second District today issued its ruling in Choate v. Celite Corporation, No. B239160, __ Cal. App. 4th __ (2d Dist. May 2, 2013).  The case involved Labor Code section 227.3, which provides for full payment of vested vacation time upon termination:

Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination. . . .

(Emphasis supplied.)

The court rejected an implied waiver standard and held that for the collective bargaining agreement exception to apply, the CBA must clearly and unmistakably waive the right to immediate payment: Read the rest of this entry »

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