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Negative PTO and Vacation

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  • Negative PTO and Vacation

    I currently have an employee who has negative PTO and vacation time in California. In the event that the employee resigns from the company, can we deduct the PTO and vacation time from the employee’s paycheck?

  • #2
    I have a hard copy of a PLR (Private Letter Ruling) from several years ago where this exact question was asked by an employer as it related to an exempt employee and the answer from the DLSE was no, the employer could not deduct the overtaken vacation/PTO from the employee's final check.

    Now, I know that PLRs technically apply only to the employer that requested them. Having said that, though, I would find it surprising to see the state turn around and back off that stance.

    I do not know, however, if the DLSE would take this same stance for nonexempt employees; I would call and ask.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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