Q: I used "unearned" vacation time at work and now that I'm leaving, they're deducting it from my last check. Is this legal

A: The California Labor Commissioner's Office, also known as the Division of Labor Standards Enforcement, has an excellent informational page on its website that answers most questions an employee may have regarding paid vacation benefits provided by their employer. Here is the link: https://www.dir.ca.gov/DLSE/FAQ_Vacation

A: The only way an employer is lawfully allowed to take money out of a paycheck, and especially a final paycheck, is if there is a written agreement whereby you have given the employer the right to take the money, or for lawful government withdrawals/deductions. If you signed any kind of agreement allowing the company to deduct the vacation pay at the end of your employment, it is lawful. If not, the employer must go after you for the difference by litigation or negotiation. However the bottom line is that if the company advanced you money you did not earn, it will have a right to get it back from you. One point of note however: an employer who willfully fails to provide you with all earned pay in the final paycheck is liable to the employee for Waiting Time Penalties of one day of pay for each day the employee is made to wait for those funds, for up to thirty additional days of pay. Good luck to you.

A: In California, vacation time is considered earned wages, meaning it cannot be taken away once earned. If your employer allowed you to take vacation time before you had actually accrued it, this is often treated as an advance on your wages. However, when you leave the company, your employer can deduct the amount of unearned vacation time from your final paycheck, as long as it doesn't reduce your wages below the state minimum wage for the hours you worked.

It's important to ensure that your final paycheck accurately reflects any other wages or benefits you are owed. If the deduction for unearned vacation time seems excessive or unfair, you might want to discuss this with your employer to ensure there hasn’t been a mistake.

If you're unsure about the legality of the deduction or if something feels off, it could be beneficial to seek additional advice to make sure your rights are fully protected.