California Paycheck Deductions: What is Allowed? Part II

California Paycheck 2

What cannot be deducted from California paychecks?

In California, the basic rule is that the employer has to pay for all of the normal costs of doing business. It may not pass these expenses along to the employee. Expenses that fall into this category – and therefore may not be deducted from employee paychecks, including:

Business expenses – An employee must be reimbursed for any costs incurred or losses suffered in doing the job. An employer may not deduct these business expenses from an employee’s paycheck. Examples include parking and tolls (when driving on company business), travel, business meals, gifts for clients, and so on.

Breakage and cash shortages – An employer cannot charge an employee for losses caused by the employee’s carelessness. For example, if an employee drops a dish, damages a piece of furniture, or experiences a register shortfall, the employer may not deduct the value of that loss or shortage. These losses are considered part of doing business.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (800) 401-4466 or by visiting http://payablaw.com

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