What Should California Employees Know About Wage Deductions?

As an employee in California, it is crucial that you understand wage deductions. By understanding wage deductions, you can ensure you receive your rightful earnings. You might assume that all the deductions you see on your pay stubs are legal, but are they? While some may be legal, do not be surprised if others are not.

The California Labor Code has some of the strictest rules, including strong regulations regarding the types of deductions employers can and cannot make from employees’ paychecks. An employer cannot make just any deduction from your paycheck. They must follow specific laws. If an employer fails to follow the law, you may have the right to take legal action to recover the wrongfully deducted money.

What Deductions Can Employers Make in California?

In California, there are only a few types of paycheck deductions that are considered legal, as listed below;

• Legal Requirements: Deductions are legal if federal or state law mandates them or if they are court-ordered. For example, employers can withhold income taxes, child support, and alimony.
• Written Consent: If you expressly permit your employer to make certain deductions in writing, such as your share of insurance premiums, your employer can make such deductions.
• Collective Bargaining: Deductions authorized by wage or collective bargaining agreements for welfare, health, or pension contributions are legal.

It is vital to note that while employers can make the above deductions, they are not allowed to reduce your wages to a point where you earn less than the minimum wage. Currently, the minimum wage in California is $16.50 per hour.

What Deductions are Not Allowed Under California Law?

California law prohibits employers from making the following deductions from employees’ paychecks;

• Gratuities: If, for example, you work in a restaurant, your employer is barred from taking or sharing in any part of the tips that customers leave for you. However, a policy allowing for tip pooling or sharing is considered legal.
• Bond: If your position requires a bond, your employer is responsible for paying the full cost of the bond. They cannot deduct the cost of the bond from your wages.
• Photographs: If an employer requires your photograph, you are not required to pay for the photograph. Your employer is responsible for the cost of the photograph.
• Medical Exams: If a job requires you to take a pre-employment medical or physical examination, an employer cannot deduct the examination cost from your paycheck.
• Job-Related Expenses: If you spend your money on supplies, travel, or other work-related expenses, your employer should reimburse you. These costs should not come out of your paycheck.
• Uniforms: If you must wear a uniform at work, your employer must pay for it.
• Employee Mistakes: If, for example, you break or damage company property or lose company money while working, your employer cannot deduct money from your pay to cover that loss, unless they can show that the loss was caused by intentional misconduct or gross negligence. 

Understanding wage deduction laws can help you protect your hard-earned money. While some deductions are legal, many are not allowed. If an employer disobeys the law and unlawfully takes money from your paycheck, you have rights and may be entitled to get that money back. Always ensure you go through your pay stubs thoroughly. If something seems off, speak up!

Contact a California Employment Lawyer

If an employer has unlawfully deducted money from your paycheck, contact a California employment lawyer near you for legal help.