Can't Touch This! What Employers Can and Can't Deduct from Employee Time Off in California

As an employer in California, it is important to know the laws surrounding vacation and sick time for employees. One common question is whether an employer can deduct vacation or sick time from an employee for being off work. The short answer is, it depends.

Vacation Time

Under California law, vacation time is considered earned wages, and as such, an employer cannot take away an employee's accrued vacation time, except in certain circumstances. For example, if an employee has used all of their vacation time and then takes additional time off, an employer may deduct from the employee's paycheck for that time. Additionally, an employer may have a policy in place that allows for the forfeiture of vacation time if it is not used by a certain date.

However, it is important to note that an employer cannot have a policy that requires employees to forfeit vacation time before it is earned. This means that an employer cannot require an employee to work for a certain amount of time before being eligible for vacation time, and then take away any unused vacation time if the employee leaves before that time is up.

Sick Time

In California, employers are required to provide employees with sick time. Under the state's Healthy Workplace Healthy Family Act of 2014, employees accrue one hour of sick time for every 30 hours worked. Employers can limit the amount of sick time that an employee can accrue to 48 hours or 6 days per year. Employers may also frontload sick time at the beginning of the year instead of accruing it throughout the year.

An employer may not deduct sick time from an employee's paycheck for taking time off due to illness or injury, or for caring for a family member who is ill or injured. However, an employer may require an employee to use their accrued sick time for a qualifying reason, such as a doctor's appointment or a scheduled surgery.

Policies and Collective Bargaining Agreements

Employers may have policies in place that provide for more generous vacation or sick time than required by law. Additionally, if an employer has a collective bargaining agreement with a union, the agreement may provide for different vacation or sick time policies.

If an employer has a policy or agreement that allows for the deduction of vacation or sick time for time off work, the policy or agreement must comply with California law. Employers should consult with legal counsel to ensure that their policies and agreements are in compliance.