Within the State of California, employment may be terminated at the will of either party. There are certain key activities to perform and forms to fill out before, during and after a termination of an employee takes place.If an employer provides paid vacations, all earned and unused vacation days must be paid out at termination, and vacation pay cannot be forfeited. Cal. Lab. California labor laws apply to most every worker working in California regardless of where your employer is located. Legal news and tips for employees, including meal breaks, rest breaks, overtime and unpaid wages.