Q: Can I get a questioned answered as an employer wanting to validate a PTO policy?

A: Yes, but you have to ask the question to get an answer here.

Generally I can say that California employees need to be handled according to the California Labor Code, regardless of where the company is located. California does not require an employer to provide PTO generally, except that there is a mandatory paid sick leave law. If the company does offer PTO, there are no laws that say how that benefit must be administered other than it cannot be administered in a manner that makes distinctions based on an employee's membership in a protected class of people. PTO can be distributed in lump sum amounts or it can be earned incrementally. Once earned by an employee it cannot be taken away by the employer for any reason. An employer can cap the amount of time that can be earned, but it can never take away PTO already earned. When an employee separates from employment for whatever reason, the PTO must be paid out to the employee. When the employee is terminated by the employer, the accrued PTO must be paid out on the day of termination. If the employee quits, the employer must provide the accrued PTO to the employee on their last day of employment, or 72 hours after they give notice they are quitting, whichever is later.

It would be wise for you to locate and retain local employment counsel to provide any specific advice you need. California employment laws are quite extensive and making a mistake can cost a company a great deal of money.

Good luck to you.