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Mar13
Wage and Hour – ERISA Plan
The following is not meant to be legal advice.

 

 

When a company is part of an ERISA plan, meaning it is federally funded under ERISA laws, the federal laws applying to the company supersede the state laws.  For example, if someone is terminated before his/her anniversary, the accrued vacation does not need to be paid out to the employee.

 

 

In California, anytime an employee terminates, he/she must be paid his/her wages.  If the wages are not paid on time, the employer may be penalized, unless the claim for wages is filed while the employee is still on the job. 

 

The company that is under the ERISA laws usually notifies the employee that if he/she is terminated before his/her anniversary, he/she forfeits the vacation. 

 

 

If some localities like San Francisco, the ERISA laws do not apply because of collective bargaining agreements.  In areas such as San Mateo where there is no protection of collective bargaining agreements, the ERISA laws apply.

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