Hi,
I Live and work in California from 2001.My employer is based in Michigan.
I have 7 days vacation.I m resigning from my company by giving 14 day
notice as per agreement.I maynot be able to use the vacation before
resigning.

As per my HR,It's company policy to not give the accrued, unused
vacation pay.So it's either use it or Lose it. Also citing that If
they give it to me, it's like discrimination by giving just to me as I
m the only employee working in california.
But I m seeing in the web and from friends,as per california labour
law, I m entitled to accrued Vacation pay, If I don't use it.

Which one is true ? Is the Company policy which they changed is valid
or the state law?
What are my options for getting my money.

Thanks

Hello gbgb-ga,
Sorry to hear about your situation. 

As I?m not a lawyer, following information is not any kind of legal
advice to you.  But, while going for similar cases over internet, here
is what I?ve found out for your situation.

According to Division of Labor Standards Enforcement (DLSE) site, 
"Under California law, unless otherwise stipulated by a collective
bargaining agreement, whenever the employment relationship ends, for
any reason whatsoever, and the employee has not used all of his or her
earned and accrued vacation, the employer must pay the employee at his
or her final rate of pay for all of his or her earned and accrued and
unused vacation days. Labor Code Section 227.3. Because paid vacation
benefits are considered wages, such pay must be included in the
employee?s final paycheck."

You can get more details about your case by checking the DLSE website:
http://www.dir.ca.gov/dlse/FAQ_Vacation.htm
A similar question is posted as point 10.

According to the DLSE "Earned vacation time is considered wages, and
vacation time is earned, or vests, as labor is performed."

I?ll suggest you to contact the Dept. of Labor office nearest to your
location and find out exactly what needs to be done in your situation.
I had a similar situation with my ex-employer and they did help me
out.
To find out the nearest location of their office, use this link:

http://www.dir.ca.gov/dlse/DistrictOffices.htm

Also, check out http://www.dir.ca.gov/dlse/DLSE-FAQs.htm to get more
details which might help you out in negotiating with your employer.

I?d also like you to check similar questions posted here in Google Answers,

http://answers.google.com/answers/threadview?id=45228 and

http://answers.google.com/answers/threadview?id=331378

You can also check the CA Labor code for more details:
http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=lab&codebody=&hits=20

If you want to dispute your case, you might want to consider this:
http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm

As I mentioned earlier, first try to contact the DLSE nearest to your
place and if they ask you to contact a labor attorney, then find more
details about attorneys via this link:
http://lawyers.findlaw.com/lawyer/practicestate/Labor%20Law/California
Since you are residing in CA, the above link will give you details
about various labor attorneys located in the CA state.

I hope my answer helps you in resolving your case. In case of any
question, feel free to post a clarification.

Search Strategy:
Accrued Vacation pay California law
://www.google.com/search?sourceid=navclient&ie=UTF-8&oe=UTF-8&q=Accrued+Vacation+pay+California+law

labor attorneys in CA
://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=labor+attorneys+in+CA&btnG=Search

With Regards,
netcrazy