Can an employer buy back vacation or PTO hours at less than full value from California-based employees?
HRCalifornia
No. That would be a forfeiture of earned and vested vacation or PTO, which is a violation of Labor Code Section 227.3.
The code, in brief, provides that vacation is vested and requires unused vacation to be cashed out at termination at the ending rate of pay. Further, there can be no forfeiture, such as buying back at less than full value. Another example of forfeiture is a "use it or lose it" policy.
An out-of-state firm that has employees in California also is subject to Labor Code Section 227.3.
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