(a) As used in this chapter, "vacation credits" means vacation credits accumulated by a state employee pursuant to Section 19858.1 of the Government Code or by any other public employee pursuant to any law for the accumulation of vacation credits applicable to the employee.
§ 704.113.Vacation Credits
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Last amended 2023 · Last verified July 28, 2026
In one sentenceSection 704.113 exempts up to $7,500 in aggregate accumulated vacation credits, accrued vacation pay, sick leave, or family leave, while treating amounts paid out from those credits the same as ordinary wages subject to earnings withholding or support assignment orders.
Full Text of § 704.113
(b) The aggregate interest, not to exceed seven thousand five hundred dollars ($7,500), in vacation credits or accrued, or unused, vacation pay, sick leave, or family leave is exempt.
(c) Amounts paid periodically or as a lump sum representing vacation credits are subject to any earnings withholding order served under Chapter 5 (commencing with Section 706.010) or any earnings assignment order for support as defined in Section 706.011 and are exempt to the same extent as earnings of a judgment debtor.
Plain-English Summary
Public employees accumulate vacation credits and similar leave balances over time, and this section protects a portion of that value while it remains unpaid. The aggregate interest in vacation credits, or in accrued or unused vacation pay, sick leave, or family leave, is exempt up to $7,500. "Vacation credits" reaches both credits state employees accumulate under the Government Code and comparable credits any other public employee accumulates under whatever law applies to that employee.
Once that value is paid out — whether periodically or as a lump sum — the exemption analysis shifts. Subdivision (c) treats those payments the same way the Wage Garnishment Law treats ordinary earnings: subject to any earnings withholding order served under Chapter 5, or to an earnings assignment order for support, and exempt to the same extent a judgment debtor's regular earnings would be exempt.
Frequently Asked Questions
Is unused vacation time protected from a judgment creditor?
Yes, up to $7,500 in aggregate value across accumulated vacation credits, vacation pay, sick leave, and family leave, under § 704.113(b).
What happens once the vacation pay is paid out to the employee?
It's treated the same as ordinary wages — subject to any earnings withholding order or support assignment order, and exempt to the same extent regular earnings would be.
Does this exemption apply to private-sector employees?
The vacation-credits definition in § 704.113(a) is built around public employees, referencing Government Code accumulation rules and other laws applicable to public employees specifically.
Amendment History
Amended by Stats 2022 ch 716 (SB 1099),s 6, eff. 1/1/2023. Amended by Stats 2022 ch 28 (SB 1380),s 25, eff. 1/1/2023. Not implemented per s 168. Amended by Stats. 1992, Ch. 163, Sec. 40. Effective January 1, 1993. Operative January 1, 1994, by Sec. 161 of Ch. 163.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: vacation pay exemption californiaaccrued leave exempt from creditors