Tag: Reducing Absenteeism

How can a California employer administer their PTO policy and still stay in compliance with the requirements for exempt employees? Can the employer make deductions from pay for an exempt employee after all PTO time has been used?

In California, PTO is legally the same as vacation. An employee may use the time for any reason she or he likes, subject to notice and scheduling requirements. PTO, like vacation pay, also "vests" as it is earned/accrued over time and must be cashed out at termination.