Legal Question in Employment Law in California

We are a new company (1 year old. We had only 1 employee that we discussed vacation benefits with. He has left the company and wants us to pay him vacation pay. We did not offer vacation benefits to anyone else in the company. If we pay the employee that no longer works here, does that set a precedent for us to pay other employees vacation benefits. Vacation benefits has never been offered or discussed with any other employee.


Asked on 12/14/12, 2:25 pm

1 Answer from Attorneys

Terry A. Nelson Nelson & Lawless

Only if vacation or any other benefits are promised/guaranteed by the company policies [written or 'common'], or in an offer letter or contract with an employee, and only if they are payable upon termination if not 'used', would the company be obligated to pay. If he can't prove both those issues, he can't win a claim for them. It is up to you to decide whether to honor your 'promise' to him and pay, or deny.

Every company should have a policy manual and employee handbook clearly describing this and all the other issues that make up personnel and operating policies and rules for the company. It is very poor business management to operate without all such issued decided upon by the company, and put in writing so there is no question or dispute after the fact. Anything less will get you in similar legal difficulties, costing you attorney fees to resolve that far exceed the cost of doing it right to start with.

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Answered on 12/14/12, 3:47 pm


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