Tag: deduct PTO at time of termination

Question: Can we deduct a negative PTO balance from an exempt California employee’s final paycheck? Answer: According to the California Chamber of Commerce website and the California government websites (DLSE Enforcement Policies and Interpretations Manual sec. 15.1.12 and Lab. Code sec. 227.3), vacation and PTO are considered “wages.” Even if the employee authorizes a deduction…