In California, time off policies, whether paid or unpaid, are generally shaped by a combination of company policy and state or federal labor laws. While vacation time is considered earned wages once accrued, employers are not legally obligated to provide vacation or unpaid leave unless specific laws apply.
It is often asked if an employer can deny unpaid time off in California. Yes, an employer can deny unpaid time off, unless the request falls under protected leave laws such as the California Family Rights Act (CFRA) or the federal Family and Medical Leave Act (FMLA). However, if an eligible employee is unlawfully denied leave under these statutes, they may file a complaint with the Department of Fair Employment and Housing (DFEH) within three years. In such cases, employers may face legal consequences, including payment of lost wages, job reinstatement, emotional distress damages, and other forms of compensation.
Our expert employer defense lawyers at Novian & Novian understand the nuances of California Employment law. With over 35 years of experience, our attorneys are ready to help employers navigate labor law-related questions and offer Business Litigation & Dispute Resolution, when necessary. Contact us today to learn more.
In this article, we delve deeper into the robust employment laws of California, the possible repercussions of denying unpaid time, and how employers can navigate the statements of this federal law efficiently.
Can an Employer Deny Unpaid Time Off (California)?
Yes, employers can deny unpaid time off as they aren’t required by law to give their employees paid or unpaid leave. They may offer paid vacation, but these days, they are considered earned wages, accumulating as the employees work.
Employers are only required to grant time off for eligible employees if they request time off for CFRA or FMLA-covered reasons. California laws clearly state that under these circumstances, employers are legally required to grant them paid sick leave or time off.
To be more precise, they may be the following:
- A severe health condition that makes the employee unable to do their job.
- A serious health problem that makes employees unable to perform their jobs due to work-related injury or illness.
- Having to care for a child, parent, or spouse with a severe health problem.
- Birth parent bonding.
- Bonding for foster non-birth parents, adoption/foster placement
- A qualifying circumstance arises from a spouse, child, or parent being a military member on active duty or called to active duty status.
That said, employers may also deny unpaid time off if the nature of the request doesn’t correspond with the reasons detailed in the FMLA or CFRA, like addressing business needs. The employer may also deny the request if the employee gives insufficient notice, wants to take too much time off, or doesn’t have any valid reasons.
What Are the Legal Grounds for Denial?
While California labor laws generally favor employee rights, there are still legal situations in which an employer can deny time off. They include:
Denying Unpaid Time Off
California federal law states that employers should not interfere with time off requests that fall under the California Family Rights Act or the FMLA, as it may result in penalties. Still, the employer may deny the demand if the employee cannot provide valid reasons for their unpaid leave request or has given only short notice.
Denying Paid Time Off
Employers can deny employees requests for accrued paid time off, but the employer must provide a valid reason or argument for the response. For example, suppose an eligible employee hasn’t scheduled their accrued paid time off in accordance with the employer’s policy. For instance, they forgot to obtain consent from their manager/supervisor. In that case, the employer may legally deny the vacation request, even though it can be disappointing and frustrating for the employee.
Employers can also limit how many vacation days employees can earn, and when someone leaves the job, they have to pay out any unused vacation days. The state Labor Commissioner makes sure vacation policies are fair for everyone.
What Are the Employer’s Rights and Obligations?
Time off in California isn’t mandatory by the California Labor Code, but, the majority of employers provide paid time off (PTO) as a benefit or perk.
Employers who do implement a PTO policy have the right to the following:
- Policy Establishment & Enforcement: The employer has the right to establish a company policy and other documents that provide employees with the necessary information about the nuances of the policy. The document should describe how employees should request unpaid time off and PTO and should highlight cases that fall under the California Family Rights Act and other similar legal documents that also deal with paid sick leave, etc.
- Documenting All Unpaid Leave and Paid Leave Requests: Employers should document all these requests. This documentation can include the date of the request, the reason for the request, and whether it was approved or denied.
- Compliance With Labor Laws: An experienced employment lawyer may help ensure that the company policy complies with California law pertaining to sick leave, family leave, and other protected time off.
- Communicating Policy and Labor Law: Employers also have the right to speak their unpaid time off policies to employees, including through employee handbooks or other written materials. This helps employees understand their rights and responsibilities regarding time off requests.
What Are the Consequences of Unlawfully Denying Unpaid Time Off?
First, employers must ensure that the denial didn’t violate labor laws such as FMLA or CFRA and that the employee has no legal grounds to file claims that may result in a lawsuit.
Those employees who have been denied their requests that are covered under the pertaining medical leave act have legal grounds to take action and file complaints with the California Labor Comissioner’s Office or turn to civil litigation to pursue legal remedies.
Specifically, if the employer is liable for denying paid family leave or violates the Parent Leave Act, they may be required to:
- Cover the damages, losses, or injuries that the employee suffered. This includes front and back pay for lost future wages, if applicable.
- California laws also require the employer to pay compensatory damages for embarrassment, suffering, pain, and humiliation.
- Pay attorney fees and punitive damages.
- Implement adequate training for supervisors, managers, and employees in handling internal grievances and the FEHA (Fair Employment and Housing Act)
Brock vs. Amazon: A Case of Labor Law Violation
Take the case of Scott Brock from Bakersfield, CA, whose position at Amazon was terminated after he was denied unpaid leave after his parents passed away.
The employer violated both the CFRA and the Assembly Bill 1949 but still argued that Brock’s position was terminated because he threatened a co-worker and violated the workplace conduct policy at Amazon.
Still, Brock was eligible for unpaid leave, according to the lawsuit, at least 1,250 hours in the 12 months before the tragedy.
Brock was seeking damages of over $500,000 at the time, according to their lawyer, Ronald L. Zambrano, for emotional distress, lost wages, and punitive damages.
This wasn’t the first time Amazon had to deal with similar cases. Only two years before, a Santa Ana woman won $300,000 in court after the jury found she was a target of disparate treatment at her HR job at Amazon. Later, the court granted a total of $2.47 million in attorney’s fees to Thu Ngyuet Thi Tran, who stated that her supervisors dismissed her accommodation request while dealing with pregnancy-related morning sickness.
Working with a seasoned employment law attorney may help remedy such situations. Many employers have found that working with an expert can help them settle a claim before it reaches court.
On that note, the average cost to defend an employment lawsuit in an out-of-court settlement hovers at $75,000, but the expenses add up if the court is involved, with an average of $125,000.
When Can An Employer Deny Leave for Family and Medical Reasons?
Under certain circumstances, it is perfectly legal for the employer to deny vacation days. However, by denying leave when a family member is ill or in other law-covered instances, the employer may face different problems apart from just legal action.
Denial of medical leave, for example, may result in decreased workplace morale, and employees may feel unsupported and undervalued, leading to decreased motivation and productivity. Denial in the case of a military family or the deteriorating health condition of an employee can also negatively affect employee retention. It may cause additional problems with high turnover rates, which can negatively affect the efficiency of the employer’s business, potentially hurting even their bottom line.
On that note, high employee turnover rates can inflict significant financial strain on a business. According to a nationwide estimate from the Small Business Administration, hiring someone new may cost 1.2 to 1.4 times their pay.
By comparison, according to the California Bureau of Labor Statistics, in the month of January 2024 alone, there were 8.9 million job openings, while separations and quits reached 3.4 million. While it is evident that not all of these quits and separations were due to the employer denying unpaid leave, it points to a negative and costly trend in the California labor market.
Types of Unpaid Time Off
In California, unpaid time off means periods when the employee neither performs their job nor receives payment. This can happen if they have already used their leave benefits or need to leave work for other reasons, such as health complications.
- Medical Leave: According to the CFRA and FMLA, employees have the legal right to take up to 12 weeks of unpaid leave to treat an existing health condition or care for a new child or family member.
- Disciplinary Suspensions: In cases of sexual assault and domestic violence, the employer may suspend the employee without pay as a disciplinary action.
- Personal Leave: Personal reasons may also grant employees the right to take unpaid time off, but these need employer approval.
- Non vs. Exempt Employees: Employers won’t pay workers who are paid hourly for the time they do not work.
Instances Where Unpaid Time Off May Be Denied
While the pertaining state law gives clear guidance about handling paid vs. unpaid time off, employers can deny requests for unpaid time off in certain situations:
- Business needs
- Insufficient notice
- Based on the duration frequency of the leave
- The request doesn’t comply with the company’s policy
- Lack of valid reasons
- Taking too much time off
- Staffing issues
- Ineligibility for FMLA or CFRA-protected leave
- Performance concerns
What Are the Best Practices for Handling Unpaid Time Off Requests?
In order to steer clear of possible law violations and the negative implications of denying paid or unpaid leave, employers should aim to develop a clear time-off policy that addresses both paid and unpaid leave.
Here are some recommendations:
Clearly Define The Criteria for Eligibility: Create an outline in accordance with accrued wages and other factors, such as years spent in the company, employment status, etc.
Establish a Clear Request Procedure: Be transparent about requesting time off, such as request submission times.
Be Specific About Unpaid Time Off: Clearly state the permissible reasons for requesting unpaid time off, such as personal illness, family emergencies, or other compelling circumstances.
Ensure Compliance: Ensure your policy complies with the CFRA and FMLA.
Communicate Expectations and Restrictions: Establish the limits of unpaid leave employees may take and address your expectations regarding attendance and absence notification; also, be clear about potential write-ups.
Give Room for Employees: Develop a strategy that enables your employees to address any concerns related to your policy.
Create the necessary documentation so your managers, supervisors, and employees can refer to it if necessary. Also, adequate training should be provided to supervisors and managers on effectively implementing and administering the unpaid time off policy, including handling requests and ensuring compliance with legal requirements.
Also, it is recommended that labor laws be actively researched and that conferences in Los Angeles be attended to learn more about this evolving topic. For example, The Labor Arbitration Institute regularly hosts conferences across the nation. Try and attend one of their conferences in LA. You should also take a closer look at the California Employment Lawyers Association’s upcoming events if you want to stay on top of labor and employment laws.
Need Help Navigating Leave Denials?
Employers may deny unpaid time off in California. Still, the reasons for the denial should be valid and not violate the FMLA or CFRA, otherwise employees may take legal action.
As such, employers are advised to closely examine the Family Rights Act (CFRA) and the Federal Family and Medical Leave Act (FMLA) to avoid violations. On a similar note, unpaid leave requests that aren’t covered in the two acts should also be closely examined to foster a positive work environment and avoid potential legal problems.
To ensure that you and your pertaining policy are up to date with California labor laws, consult with our expert employer defense lawyers.
If you are currently facing legal issues regarding leave request denials, contact our business litigation and dispute resolution experts. Our lawyers have extensive experience and a proven track record of success navigating complex legal matters related to leave request denials. Rest assured that our team will handle your case with the utmost care, diligence, and expertise, ensuring your legal needs are met effectively and professionally.
FAQs
What Is Unpaid Time Off?
Unpaid time off refers to a period when an employee is absent from work without receiving wages. It may be requested for personal reasons or protected under specific laws like CFRA or FMLA.
Can I Deny Unpaid Leave if the Employee Has No PTO Left?
Yes, you can. Unless the unpaid leave is protected under federal or state laws such as FMLA or CFRA, employers may deny the request based on company policy.
Do I Have to Allow Time Off for Religious Observances?
California law requires employers to provide reasonable accommodations for an employee’s sincerely held religious beliefs, which can include unpaid time off. However, you may deny the request if it imposes an undue hardship on the business.
What If the Employee Threatens to Quit?
An employee may resign if denied unpaid leave. But, unless the leave is protected by law, employers are generally not required to grant the request to prevent turnover.
Can I Discipline an Employee Who Takes Unauthorized Unpaid Leave?
Yes, if the leave is not protected under CFRA, FMLA, or other applicable laws, employers may discipline employees for violating attendance policies. However, ensure discipline is applied consistently to avoid discrimination claims.
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