Hyatt Found to Violate California Labor Law by Delaying Vacation Time Payout to Laid-Off Employees

In a recent case involving Hyatt, the 9th Circuit Court of Appeals has ruled that the company violated California labor law by failing to promptly pay out vacation time to its laid-off employees. The court’s decision comes after it found that Hyatt’s decision to delay payment until June 2020, when the employees were formally terminated, was in violation of the prompt payment provisions outlined in the California Labor Code.

Violation of California labor law

According to court documents, the California Labor Code requires employers to promptly pay out vacation time to employees upon termination. The court determined that Hyatt’s delay in paying out vacation time to its laid-off employees was a direct violation of this provision. The court’s ruling reverses the summary judgment previously granted in favor of Hyatt by the U.S. District Court for the Central District of California and remands the case back to the district court for further proceedings.

Defining ‘Discharge’

One of the crucial aspects considered by the appeals court was the definition of ‘discharge.’ Given that the law does not explicitly define this term, the court sought clarity on whether a temporary layoff, with no specified return date, would qualify as a discharge under Section 201 of the California Labor Code. Interestingly, the court found no existing case law or cited cases that provided clear guidance on this matter.

DLSE Opinion and Guidance

In the absence of relevant case law, the appeals court turned to the California Division of Labor Standards Enforcement (DLSE) for guidance. The DLSE, through an opinion letter and its policies and interpretations manual, stated that a temporary layoff without a specific return date within the normal pay period would be considered a discharge, triggering the prompt payment provisions of the California Labor Code.

Ruling based on DLSE guidance

Relying on the DLSE’s interpretation, the appeals court concluded that Hyatt should have paid accrued vacation pay to its employees during the initial layoff in March 2020. As the temporary layoff exceeded the normal pay period and had no specified return date, the court ruled that the delayed payout of vacation time was a violation of the state law’s prompt payment provisions.

Acknowledging Pandemic Uncertainty

While acknowledging the challenging circumstances faced by businesses during the early period of the pandemic, the appeals court emphasized that Hyatt’s actions, although understandable, did not absolve the company from the violation. The court maintained that the March 2020 layoff qualified as a discharge under Section 201 of the California Labor Code, and therefore, Hyatt was obligated to promptly pay out the accrued vacation time to its employees.

Hyatt’s response

As of now, Hyatt has not issued an immediate comment or response to the court’s ruling. It remains to be seen how the company will address the violation of California labor law.

The recent ruling by the 9th Circuit Court of Appeals has found Hyatt in violation of California labor law for failing to promptly pay out vacation time to its laid-off employees. The court’s decision reverses the previous summary judgement in favor of Hyatt and emphasizes the importance of complying with the prompt payment provisions outlined in the California Labor Code. While the court acknowledged the challenges posed by the pandemic, it maintained that the delay in vacation time payout was a violation of the law. This ruling serves as a reminder to employers to adhere to labor laws and promptly compensate employees for their accrued benefits upon termination.

Explore more

How Is DeFi Redefining the Global Casino Industry in 2026?

The global gambling landscape has recently transitioned from opaque “black box” systems toward a new era of algorithmic certainty where players no longer rely on institutional trust but on immutable code. This massive migration toward Decentralized Finance (DeFi) has effectively dismantled the traditional barriers that once kept bettors in the dark regarding house odds and fund management. By utilizing trustless

RTX 5070 Ti Hits Record Low Price for Memorial Day Sale

PC enthusiasts waiting for the perfect moment to overhaul their gaming rigs have finally found a compelling reason to pull the trigger as the holiday weekend brings unprecedented discounts. The PNY GeForce RTX 5070 Ti Epic-X ARGB has reached a historic low price during the current Memorial Day sales, marking a pivotal moment for the mid-to-high-tier GPU market. This reduction

Ryzen 5 9600X and Gigabyte B850 Bundle Is an Ideal AM5 Entry

Building a high-end personal computer often feels like navigating an obstacle course of inflated component prices and rapidly shifting technological standards that leave yesterday’s hardware obsolete. For a significant period, the transition to AMD’s AM5 platform was hampered by the steep entry costs associated with DDR5 memory and the necessity of purchasing new, premium-priced motherboards alongside current-generation processors. However, the

Top Free VPNs Deliver Speed and Security for Gamers in 2026

The landscape of competitive gaming has transformed so radically that even the most powerful graphics cards and fiber-optic connections cannot guarantee a seamless online experience without additional network safeguards. As players navigate the current digital environment, it is becoming clear that victory is often determined not just by reflexes, but by the stability of the route their data takes across

How Ripple, SWIFT, and Visa Are Reshaping Global Payments

The friction that once defined the movement of capital across international borders is rapidly dissolving as the financial industry undergoes its most significant technological transformation since the mid-twentieth century. For decades, the global economy functioned on a fragmented patchwork of legacy systems that necessitated a series of intermediary steps, each adding time, cost, and complexity to what should have been