company is currently using family medical leave at the same time they are deducting vacation and sick pay benefits, is that legal?

Yes it is. In fact it is not uncommon to allow employees on FMLA to use accrued time off. Since FMLA is unpaid, this is a form of income (or partial income) replacement for time missed.

what is being done . you take time off work, using sick time, ie car wreck, you have accrued 320 hours of sick time, while you are using paid sick time , they are deducting fmla during the same period. I don't think that is the intent of the law.

The purpose of FMLA is to provide job protection. If you are receiving sick pay while on FMLA that is perfectly legal. The two are mutually exclusive. If you did not have the FMLA protection, you could be fired due to time missed.

mt-dora, you are mistaken. The FMLA statute SPECIFICALLY gives the employer permission to use vacation and/or sick time as part of the FMLA leave.