Paid Time Off (PTO) is a benefit millions of employees rely on to rest, recover, and balance personal responsibilities. However, many California workers are surprised when their employer denies their PTO request… sometimes without explanation. The question becomes: Can your boss legally deny your PTO in California?
What Exactly is PTO in California?
In California, PTO generally includes vacation days, personal days, and other employer-provided paid leave. Although employers are not required to offer PTO, when they do, California law treats accrued vacation time as earned wages. Under California Labor Code §227.3, an employer cannot:
- Confiscate earned PTO
- Require employees to forfeit accrued PTO
- Implement “use-it-or-lose-it” policies
- Refuse to pay out accrued PTO when employment ends
Because PTO is considered earned wages once it is accrued and employers must follow strict rules when managing or denying its use. In the event when an employee quits or gets fired, all accrued and unused PTO must be paid out in the final paycheck and at their final rate of pay, any failure to pay PTO may trigger waiting-time penalties under Labor Code §203.
How PTO Accrual Works in California
California allows employers to choose their own method of PTO accrual so long as it is lawful and clearly disclosed. Common structures include:
- Accrual by hours worked (for example, 1 hour of PTO for every 30 hours worked)
- Accrual per pay period
- Annual allotments or lump-sum grants
California also allows accrual caps, but they must be “reasonable.” For example, an employer may stop PTO accrual once an employee reaches 1.5 or 2 times their annual accrual amount. However, employers cannot zero-out or delete earned PTO, reduce already-accrued PTO retroactively, or require forfeiture of earned time. If your PTO balance drops without explanation, it may constitute wage theft.
Is PTO Required by Law in California?
Private employers in California are not legally required to offer paid vacation or general PTO. However, once PTO is provided, whether in an employee handbook, written contract, or company policy, it becomes legally enforceable.
In contrast, paid sick leave is mandatory under California’s Healthy Workplaces, Healthy Families Act (HWHFA). Employers cannot legally deny an employee the right to use accrued sick leave for qualifying purposes.
Can an Employer Legally Deny PTO in California?
An employer may legally deny a PTO request if the denial is based on legitimate business reasons and is applied consistently. In fact, employers may deny PTO when:
- Too many employees requested the same dates
- The request conflicts with operational needs
- The employee failed to provide required notice
- A blackout period is in effect (and communicated in policy)
- The timing would cause significant business disruption
However, employers cannot deny PTO in ways that violate California law. A denial becomes unlawful when it is discriminatory (based on race, gender, age, disability, religion, etc.), retaliatory (for reporting harassment, filing a complaint, using sick leave, or engaging in protected activity), inconsistent with written policy, or applied unfairly to certain employees. If your employer’s justification seems inconsistent or pretextual, you may have grounds for a legal claim.
Employer Discretion vs. Employee Rights
While there are a set of rules when it comes to the approval of PTO, California recognizes a balance between operational needs and employee protections. Employers may implement request deadlines, peak-season restrictions, and additional rules to ensure fairness to all employees. But employers must also comply with:
- California Labor Code §227.3 (prohibiting forfeiture of vacation wages)
- Anti-retaliation laws
- Anti-discrimination laws
- Wage and hour regulations
If a PTO denial violates any of these protections, it may amount to a labor law violation.
What to Do If Your PTO Request Was Unfairly Denied
If you believe your PTO was denied unlawfully:
- Request the reason for denial in writing.
- Review your employee handbook and PTO policy.
- Save copies of your request, emails, and any relevant communication.
- Document any differential treatment among employees.
- Contact an employment attorney to evaluate whether your employer violated California law.
Our firm can assess whether the denial was legal, retaliatory, or discriminatory.
Contact West Coast Employment Lawyers Today
If your employer denied your PTO request unfairly or unlawfully, you may be entitled to compensation. At West Coast Employment Lawyers are here to protect your rights and help you take action. With over 25 years of experience, we represent employees in PTO-related disputes involving wage theft, retaliation, discrimination, and wrongful termination. You do not have to navigate this situation alone.
Call us today at (213) 927-3700 or send us a confidential message through our easy contact form.
