Money gets deducted from each paycheck for various reasons, but are all of them legal? Most employees know that the federal law mandates deductions from his or her paycheck for Social Security and federal income tax. These are normal deductions that the employee must authorize. Other deductions, except when a deduction is required to comply with a court judgment such as wage garnishments for child support payments, may require you to take a closer look.

An employer may deduct money for items that an employee has voluntarily authorized in writing such as union dues, insurance premiums, and charitable contribution. These deductions happen with the employees consent; however, other deductions should be closely scrutinized.

Some deductions are illegal, and some of the frequent unlawful deductions made by employers include:

Employee gratuities given for service to the public cannot be taken by the employer from the employee’s wages.
Cost of employee photographs that are required by the employer.
The cost for a bond of an employee must be paid by the employer.
The employer must pay for the costs of uniforms that the employee is required to wear. This includes wearing apparel with a distinctive design or color.
Medical exams required as a condition of employment or while employed must be paid for by the employer. This also covers exams required by federal or state law or regulation, or by a local ordinance.
The cost of meals cannot be deducted from an employee’s paycheck if they do not want to eat the food.
An employer cannot legally deduct money from an employee’s paycheck to cover the loss of company property, breakage, or shortages even if these are the result of simple negligence. California courts have held that these problems are just the cost of doing business. This means that the employee does not have to pay for accidents or when a customer leaves without paying their check.

However, if the employer can show that a loss of any type is caused by a willful or dishonest act or by gross negligence on the part of the employee, then the employer may have the right to deduct the loss. It should be noted that the employer cannot wantonly charge or assume that the employee’s actions were so grievous as to meet this standard.

If an employee believes that illegal deductions have been made from their wages, then they can file a complaint with the Labor Commissioner’s Office. The complaint should include all of the relevant facts and pertinent information. The complaint will be assigned to a Deputy Labor Commissioner who will review the file and arrange a conference or a hearing. Dismissal of the complaint is also a possibility. If this occurs, then the employee will not receive any help in recovering lost wages.

If you, or someone you know, are facing legal issues in the workplace United Employees Law Group has answers, Call Today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.

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All employees must be able to know what their wages or salaries are a well as the exact amounts they take home when all deductions are factored. There are some paycheck deductions like social security and health insurance premiums that are legal but on the other hand, there are deductions that are very illegal. In the city of California, employers aren’t allowed to deduct several expenses from employees’ paychecks

* Items that can never be deducted

There is a basic rule in California stipulating that the employer must pay for all normal costs of running the business. He must never pass such expenses to the employee. Such expense must never be deducted from employees’ paychecks. These types of expenses include;

(a) Business expenses

Employees must be compensated for any loss that they suffer while doing any job. Employees must never deduct these business expenses from the paychecks of their employees. Such examples include gifts for clients, business meals, tolls etc.

(b) Cash shortages and breakages

An employer must never charge an employee for the losses that are caused by carelessness on the side of the employee. For instance, if an employee drops glasses in a restaurant business, the loss will be incurred by the business

(c) Tools and equipment

The employer must reimburse the employee for the items the employee purchases while carrying out business duties. Such item might comprise of hand tools or even uniforms

(d) Licensing and bonding

If employees must be licensed or bonded to work for employers, the employers must foot the costs. On the same note if an employer wants his employees to take fingerprints or even photographs, he must pay for the costs of all those items. Employees who are required to undergo medical exams as a condition for employment must be reimbursed such costs

(e) Tips

In California, tips are given to employees. Tips are not part and parcel of employees’ salaries. Tip sharing and pooling is allowed but employers and their managers must never participate

* Items that may be deducted

Employers may deduct expenses from employees’ paychecks only if they are allowed by the federal law or through collective bargaining agreements. Employers are also allowed to deduct health insurance premiums but they can only do this after getting an authorization from their employees in writing. This means that employees do not have the power to deduct any amount of money even if they owe such employees money

If employers advance money to their employees, they cannot make deduction for such advances unless such employees authorize in writing

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