What You Need to Know About California Wage Deduction Laws
Each state has different labor and wage laws, which can confuse employees. Here’s everything you need to know about California’s wage deduction laws.
California allows limited circumstances when employers can withhold wages from employees. California Labor Code protects employees from common methods employers use to deduct from their paychecks, including gratuities, photographs, uniforms, etc. California employees have legal options to pursue if their employer illegally deducts their wages.
California Wage Deductions
California grants employers the right to withhold amounts of money from an employee’s wage when:
- Required to do so by state or federal law,
- An employee authorized in writing the deduction to cover insurance premiums, benefit plan contributions or other deductions, and
- A wage or collective bargaining agreement expressly authorized the deduction to cover health, welfare, or pension contributions.
California does not allow employers to make common payroll deductions, including:
- Gratuities,
- Photographs,
- Bond,
- Uniforms,
- Business expenses, and
- Medical or physical examinations.
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Gratuities in California Wage Deductions Laws
California Labor Code Section 351 does not allow an employer to collect or take any gratuity one gives or leaves an employee. An employer cannot deduct any wages from an employee based on their gratuity. However, a business may have a policy allowing for tip-sharing among employees who provide direct table service to customers.
Photographs in California Wage Deductions Laws
California Labor Code Section 401 requires an employer to pay for an employee’s photograph if they require one from an applicant or employee.
Bonds in California Wage Deductions Laws
California Labor Code Section 401 requires an employer to pay for an applicant or employee’s bond if the employer requires one.
Uniforms in California Wage Deductions Laws
California Labor Code Section 2802 requires an employer to pay the cost of the uniform if they require an employee to wear a uniform. California law defines a uniform as “wearing apparel and accessories of distinctive design and color.”
Business Expenses in California Wage Deductions Laws
California Labor Code Section 2802 requires employers to reimburse employees for all expenses or losses incurred as an employee’s direct consequence of engaging in work duties.
Medical or Physical Examinations in California Wage Deductions Laws
California Labor Code Section 222.5 does not allow an employer to withhold or deduct wages from any applicant or employee for any pre-employment medical or physical examination as a condition of employment. This law does not allow employers to force employees to pay for any medical or physical examination required by federal or state law.
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FAQs About Wage Deduction Laws in California
Can my paycheck be deducted if I come to work late in California?
An employer can deduct money from a paycheck if a party comes to work late. The deduction must be proportionate to the amount earned during the time lost. For example, an employer can deduct 30 minutes of pay for an employer that arrives 30 minutes late to work.
What do I do if an employer makes a deduction from my paycheck in California?
If an employer makes an illegal deduction from a party’s paycheck, the party can file a wage claim with the Division of Labor Standards Enforcement or file a lawsuit in court against their employer.
How can I file a wage claim in California?
Parties can file a wage claim if they experience wage theft. A wage claim starts the process for a party to collect their unpaid wages or benefits. One can file a wage claim online, by email, mail, or in person. Parties wishing to file a wage claim online can visit this website.
What happens next after I file a wage claim in California?
When one files a wage claim, the Labor Commissioner’s Office will investigate the claim to determine what an employer owes an employee. A settlement conference will likely occur between the employee and employer to resolve the dispute. If parties do not resolve the issues, the court could schedule a hearing officer to review the evidence and decide.
Can I sue an employer if I am an undocumented worker in California?
California labor laws protect all workers, regardless of immigration status.
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