Seven Illegal Payroll Deductions in California

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Seven Illegal Payroll Deductions in California

Updated June 14, 2011
1 minute read

Popular opinion does not decide the list of payroll deductions an employer can legally take out of an employee's paycheck. California labor laws ban deductions.

A misjudgment on taking money from an employee's pay can break down the trust between an employer and the employee. Employers have to treat the pay as promised money. The can only take deductions a law says is right or the employee agrees to.

1. Money Requested at Will. Business risks are an employer's responsibility. They can not expect the employee to cover any cash shortage that happens or pay for business machine losses and anything that breaks. The business covers costs, including for supplies, furniture, and equipment. An employer can ask for a contribution, but the their ability to make a request is restricted by Industrial Welfare Commission Wage Orders and court cases.

2. Tips, Gifts, and Other Gratuities. Gratuities are given to employees for them to own. The employer can neither take a share or accept an offer from an employee. A wage deduction is never made.

3. Business Photographs. Taking a photograph for the business is a friendly gesture, not a service given to the employer. A photograph the employer has to have for the company gets paid for at the employer's expense. They can not ask the employee to pay for the capture of their look on film instead.

4. Bonds for the Business. Coming in to a business does not cost money, unless an employee or an applicant agrees to pay to show a small added commitment. Employers pay the bond cost.

5. Work Uniforms. Workers are not simply there at work to perform for the business. Work uniforms are an employer's offer of clothes in their colors. The cost payment comes with the offer. The worker does not chip in when the employer says they have to wear a uniform.

6. Business Expenses. Workers join a business to work. Paying into the business is a choice. Any money spent for their work at the business the worker can ask the employer to pay for. They are entitled to a reimbursement. Losses get treated the same as expenses.

7. Medical Examinations. Medical examinations are an extra request. When an employer says an employee or applicant has to go through a medical examination and pass, the employer pays. Wage deductions are not taken.

The cost responsibility also falls on the employer's shoulders when a state or federal law says the medical examination is needed.

Sources:

California Department of Labor Standards and Enforcement, Payroll Deductions and Offsets Against Wages (January 2011).