ILLEGAL WAGE DEDUCTIONS:
Many times, employers knowingly or unknowingly make unlawful deductions from an employee’s paycheck. Under California law, an employer can not take deductions from an employee's wages unless:
- the employer is required to do so by local, state, or federal law (such as income taxes or garnishments);
- when a deduction is authorized in writing by the employee to cover things like insurance premiums, hospital, or medical dues;
- other deductions not amounting to a rebate or deduction from the standard wage arrived at by collective bargaining or wage agreement or statute;
- deductions for union dues where such deductions are authorized by joint wage agreements or collective bargaining contracts negotiated between employers and employees or their representatives.
Example of unlawful deductions, include:
- Tips;
- Uniforms;
- Business Expenses
- Breakage or damage to company property unless it was a result of the employee’s dishonesty, willfulness, or grossly negligent act.
- Loss of company money unless it was a result of the employee’s dishonesty, willfulness, or grossly negligent act.
DID YOU KNOW:
- If an employer overpays you, the employer can only deduct the overpayment amount from your next paycheck if, and only if, you consent.
- An employer can make a pro rata deduction from the salary of an exempt employee’s salary if the employee is absent for a full day or more on personal business.
For more information about Illegal Wage Deductions see Opinion Letters from the California Division of Labor Standards Enforcement:
| Letter No. |
Description |
| 1988.06.13 |
(Deductions: Authorization) |
| 1998.09.18 |
|
| 1994.01.27 |
(Deductions: Cost of processing lost or stolen check) |
| 2000.08.01 |
(Deductions: Debiting a manager's pay for expenses) |
| 1991.05.07 |
(Deductions: Sign up Bonus/Draws against commission) |
| 2003.02.24 |
(Deductions: Due to damages to company property) |
| 1999.09.22-1 |
(Deductions: Overpayment of wages) |
| 1993.04.19-1 |
(Deductions: Gross negligence, simple negligence) |
If your employer is deducting expenses from your paycheck for uniforms, supplies, tools, and equipment, and these items are required by your employer for the performance of your job, these deductions may be illegal. In addition, if you no longer work for the employer who made the deduction, you may also be able to recover the waiting time penalty. Call our office at (310) 277-2323 or contact us online for a free consultation
Let us help you recover the wages and benefits you are owed.
