Yesterday, guest columnist Cathleen Yonahara of Freelance Cooper & Foreman, LLP, discussed a recent case in which a departing employee claimed that his employer’s sabbatical program was actually vacation that had to be paid out upon termination. Today: The court’s ruling in the case.
[Click here for the case details.]
The court actually declined to come down on one side of the case or the other, concluding that reasonable minds could differ on whether the sabbatical was intended as an incentive to induce experienced employees to continue working for the company, or as additional vacation for longer-term employees.
Because the court couldn’t decide whether the eight-week leave was a legitimate sabbatical program or regular vacation, it allowed the case to proceed to trial. Paton v. Advanced Micro Devices, Inc. (California Court of Appeal, Sixth Appellate District, 8/5/11).
What the Case Means For You
Rather than having separate vacation and sick-leave policies, many employers have a combined paid-time-off policy. Typical unconditional paid-time-off policies allow employees to take paid time off for vacation, sickness, or any other purpose.
Get first-hand, practical info on wage/hour and the other pressing issues that affect your workplace — join us for the 2011 California Employment Law Update!
Such policies generally are treated the same as vacation, and any unused accrued paid time off must be paid upon termination of employment under California Labor Code Section 227.3.
On the other hand, paid time off given for specific purposes, such as holidays, sickness, bereavement, and legitimate sabbaticals, isn’t considered vested vacation and may be forfeited upon termination (unless your policy provides otherwise).
This case provides much-needed guidance on whether a sabbatical program may qualify as a legitimate sabbatical benefit that won’t be considered vacation. To qualify as a legitimate sabbatical program, the program must minimally satisfy the four factors established by the court.
It’s Hard To Stay on Top of It All
California’s complex wage/hour rules…flexible work arrangements…twists and turns in the California and federal leave laws. In today’s HR world, there’s a lot to keep track of, to say the least.
You can do some research on your own, but the very best way to keep up with all the changes you need to know about on a daily basis is to attend a comprehensive conference that covers, in depth, all the developments you need to know about.
Fortunately, we know just where you can find such a conference — specifically for California employers!
Now taking registrations for its 6th acclaimed year, the California Employment Law Update conference is widely recognized as the leading California-specific employment law conference for forward-thinking HR professionals, executives, and in-house counsel.
In just two days (or three, if you join us for our in-depth pre-conference workshops), you’ll learn how to protect your organization from lawsuits and penalties and how to create effective, legally sound workplace policies. We’re including sessions on:
- New state and federal laws, regulations, and court cases
- Document verification and privacy
- California wage/hour tripwires
- Leave laws in California
- Harassment, bullying, and retaliation
- And more!
Plus, we’ve got your choice of four in-depth optional pre-conference workshops you won’t want to miss:
- FMLA/ADA compliance in depth
- Social media boot camp for employers
- How to conduct a legal, thorough workplace investigation
- Workers’ comp for HR professionals
Click here for all the details and registration info. If you have any questions about the event, please feel free to email me directly at jcarsen@employeradvice.com. We hope to see you in Berkeley this fall!
Download your free copy of Paying Overtime on Bonuses: A Calculation Guide today!