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May a California employer track vacation awarded as dollars instead of time? For example, employee Betty makes $10/hr and earns 10 days of vacation (80 hours at $10/hr = $800) during her first year of work. Betty receives a salary increase to $12/hr on Jan 1, and is surprised to learn that her vacation bank now shows 8.33 days. The employer asserts that it tracks vacation pay earned in dollars and only shows it as "time" for convenient reference. Is this an allowable practice? The bigger your raise, the more vacation you lose. It seems to me that this is a sneaky "use it or lose it" practice --i.e., any vacation time not used is subject to being reduced every Jan 1.