When you look at your paycheck at the end of every month, you may notice certain amounts subtracted from your gross pay. While some deductions are legal and necessary, others may be unlawful and infringe on your rights as an employee.
What can your employer take?
Employers can legally make certain deductions from your paycheck. These include deductions:
- Required by federal and state law: This includes taxes, Social Security contributions and Medicare payments. These are mandatory for all employees.
- You have authorized in writing: Examples include health insurance premiums, retirement plan contributions or union dues.
- Ordered by the court: This might include wage garnishments for unpaid taxes, child support or other legal judgments.
It’s important to note that even if you’ve authorized a deduction, it cannot reduce your wages below the minimum wage. Your take-home pay must always meet or exceed the minimum wage for all hours worked.
What deductions are illegal under California law?
Your employer cannot deduct money from your paycheck for:
- Cash shortages or breakage: If the cash register comes up short or you accidentally break equipment, your employer can’t take it out of your wages.
- Uniforms and tools: If your job requires specific clothing, accessories or equipment, your employer must provide these at no cost to you.
- Business expenses: Your employer cannot pass on the costs of running the business to you through wage deductions. This includes expenses you incur while performing your job duties.
- Gratuities: Your employer cannot take any part of tips given to you by customers.
- Photographs or bonds: If your employer requires a photograph or bond for employment, they must cover these costs.
- Medical examinations: Your employer cannot deduct the cost of any required pre-employment or ongoing medical examinations from your wages.
It’s important to note that you have the right to itemized wage statements. Your employer must provide a detailed breakdown of your pay and deductions. This allows you to verify that all deductions are correct and lawful.
Moreover, your employer cannot punish you for questioning deductions or asserting your rights. This includes actions like reducing your hours, demoting you or terminating your employment for raising concerns about potentially unlawful deductions.
Know your rights
When it comes to your hard-earned wages, you deserve clarity and fairness. If you’re facing issues with paycheck deductions, it’s important to seek advice from an attorney.