You could always simply pay them a very small meager amount during that period for only a few hours of work during that unpaid vacation time.

However I recommend researching the laws in your particular state (in this case CA) further to see what the local statutes say.

I also recommend paying them while they are on vacation, a paid employee is a happy employee.

Kind Regards,
XDS
Source(s):
My Brain.

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A hiring contract would work, and he was correct: it would be like the teacher's salaries. Are you paying the employees hourly? If so, this is problematic. If you pay them a set monthly rate, a salary, then you simply lower the salary and spread it out to include the summer month vacation.

In California, it's dependent upon the school district, but school teachers are generally allowed to choose either being paid all year (12 months) or being paid 9 months, and no payment during the three month off period. They then sign a contract agreeing to that. Some school teachers like the higher salary during the year, and then work teaching summer school to make up for the salary they take off - but they don't get unemployment during that time frame, because the contract is in effect. They are not laid off during the time off.

But I personally think the best way to handle the situation is to spread the salary out and pay it over the month off, by reducing the overall salary. If you pay 2000 per month for 11 months, instead, pay 1833 per month for 12 months. This way, you don't even NEED a contract, and yet you're paying the same amount for the year and the employee never goes without a paycheck, so they are not eligible for unemployment.

Hope that helps!
Source(s):
http://www.laborlawtalk.com/archive/index.php/f-54.html

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Q: Would it solve the problem if we created a contract where the salary was spread out, and the 4 vacation weeks were paid. This is what we are considering. What would the ramifications be?

A: Yes. That's the best way to handle it.

That's what most everyone else has ended up doing to handle the issue sooner or later.

I know because I've been an employer in that situation, and spreading it out as vacation time ended up being the least troublesome way to handle it.

It was *definitly* less troublesome than the unemployment and welfare agencies doing internal audits years later wanting details from me about former staff work histories.

The main ramification is that it means you have to account for unpaid vacation time if they quit before taking the vacation, but that's not hard to do.

Most any accountant and her favorite accounting software can already do it as a standard part of the package.
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