My friend has just learned that their California employer pays out used vacation at the end of the year. Even though the time off for vacation was taken in January, they will not receive money on their paycheck until December. The employee is non-exempt and paid hourly.
Is this a common practice? Are there any good references online that discuss this sort of policy?
Neither of us, nor anyone I've asked, has ever heard of an employer doing such a thing. I've searched everything I can think of, but I've been unable to find any mention of it.
Please note this isn't paying out accrued vacation (which is common), it's vacation time that has been used by the employee.