Here we go. From our payroll expert. Sorry to keep you waiting for so long.
No. an employee can forfeit the time, but not the pay, if vacation time is taken. Once earned, vacation pay can not be reduced other than by payment to the employee.
Time and attendance systems are often configured to entitle an employee to PDOs at the start of each year, and then track the usage as employees take time off. Some employers carry this forward to payroll where taking paid sick time reduces the regular hours on the pay stub, with the PDO hours showing on a separate line. As well, the pay statement might be configured to show the remaining PDO time available.