From the Hotline: California Partial Day Deduction
Question: Can a California employer make a partial day deduction from an exempt employee’s paid time off benefits?
Answer: Although California employers cannot dock an exempt employee’s salary for a partial day absence from work, employers may deduct from the employee’s accrued vacation or PTO for the time he or she was absent, in any increment, without jeopardizing the employee’s exempt status. This has recently been affirmed by the California Court of Appeal ruling in Rhea v. General Atomics, 2014 WL 3565429 (2014) and previously by the California Court in Conley v. Pacific Gas & Electric Co., 131 Cal. App. 4th 260 (2005).
View the court cases here: http://www.courts.ca.gov/opinions/documents/D064517.PDF