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No. That would be a forfeiture of earned and vested vacation or PTO, which is a violation of Labor Code Section 227.3.
The code, in brief, provides that vacation is vested and requires unused vacation to be cashed out at termination at the ending rate of pay. Further, there can be no forfeiture, such as buying back at less than full value. Another example of forfeiture is a "use it or lose it" policy.
An out-of-state firm that has employees in California also is subject to Labor Code Section 227.3.
The California Labor Commissioner has always opined that leave time which is provided without condition is presumed to be vacation no matter what name is given to the leave by the employer. PTO has the same characteristics as vacation and therefore is considered to be vacation and subject to Labor Code Section 227.3.
The same reasoning applies to floating holidays. Holidays that are tied to a specific event such as a birthday are not considered vacation and therefore not vested.
Forfeitures are illegal and claims can be filed with the Labor Commissioner and courts. Adequate records should be maintained and a reasonable cap on accrual of vacation should be considered.
Read more about Vacation in the HR Library.