California’s financial burden from unused employee leave benefits has reached alarming levels, with $5.6 billion owed as of 2023. The situation was highlighted by dentist George Soohoo’s record $1.2 million payout for unused vacation time upon retirement. The state’s policies allow extensive leave accrual and have resulted in a rising number of retirees cashing out significant sums, raising concerns from government watchdogs about future repercussions. The trajectory of escalating payouts signals a potential fiscal challenge for the state ahead.
"I'm more disturbed than I am surprised. This is going to be a serious problem down the road," said John Moorlach, a former Republican state senator.
In all, California paid departing workers $413 million last year for unused time off, highlighting the growing concern of increasing state liabilities.
Collection
[
|
...
]