While most employers in the Golden State provide some form of paid time off to their employees, beyond mandatory sick time, there is no legal requirement to provide vacation time. If your company chooses to offer paid vacation (and we highly recommend this) it’s important to have a clear, well-crafted vacation policy that specifies exactly how much vacation is offered, how and when it is accrued, and the maximum amount an employee can save or rollover.

Your paid time off/vacation policy is also a great place to communicate how your company actually approves time off and the steps employees need to take to request time off.  What if your business wants to designate “blackout dates” throughout the year when employees may not use vacation time? No problem. Employers have the right to determine when vacation is taken and how much can be taken at a time, in order to maintain adequate staffing levels.

Read more on CA Employers Association.