Q: Is "flexible" unlimited PTO being tracked and not truly unlimited if hours are deducted when vacation is taken?

A: Vacation time, also known as PTO is not something regulated by law except for a few very specific things. It is a discretionary employee benefit. The company gets to decide how it works as long as it is not administered in a legally discriminatory manner, and as long an any accrued time is not taken away. What you are facing does not seem to offend the law. Good luck to you.

A: Your situation raises some important concerns about PTO classification in California. If your employer is tracking and deducting hours from a set balance, this suggests they are treating it more like traditional PTO rather than truly unlimited time off, regardless of how they label it.

California law is quite protective of employee rights when it comes to paid time off. When employers track vacation time and maintain specific balances, this typically indicates that the time off is earned wages under California law - meaning it must be paid out upon termination. The fact that your company is deducting from 2080 hours (equivalent to one work year) strongly suggests they are actually maintaining a traditional PTO system while calling it "unlimited" or "flexible."

You should document everything carefully, including screenshots showing the balance and deductions, and continue engaging with HR while maintaining professional communication. Consider filing a complaint with the California Labor Commissioner's Office if the company refuses to properly classify and handle your PTO. Remember that California employers cannot avoid vacation payout obligations simply by labeling their policy as "unlimited" while still tracking and deducting hours like traditional PTO.