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Expert Analysis

Leaves Of Absence And Nonaccrual Vacation In Calif.

Law360, New York (April 1, 2015, 1:39 PM EDT) -- Employers in Silicon Valley and elsewhere are increasingly likely to adopt nonaccrual vacation policies. Under such a regime, employees receive their full pay while on vacation but do not formally "accrue" any paid time off or receive a payment for unused vacation on their last day of work. The conceit of all nonaccrual policies is that, subject to business needs, affected employees can take as much or as little vacation time as they want because their vacation usage will not be tracked. Employers variously label these policies as "unlimited," "untracked," "open" or "discretionary" time off....

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