Learn More About State And Federal Paycheck Deductions
The difference between your earned salary and your take-home pay can be significant. Because of that, you need to understand what your employer can legally deduct from your paycheck. Employers may only subtract expenses that comply with federal and state laws, including health insurance premiums, income-withholding taxes, and optional retirement contributions.
However, California employment laws do not allow employers to deduct the following:
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Business Expenses
If you pay out of pocket for a work-related expense, your employer must reimburse you. This includes parking fees, tolls while driving a company vehicle, business meals, and other travel-related costs.
Equipment, Tools, and Uniforms
Employers must provide the tools and equipment needed to perform your job. If you must purchase any required items, you are entitled to reimbursement. This rule applies to tools, uniforms, safety gear, or any other job-related supplies.
Licenses, Training, or Required Testing
Some jobs require specific licenses or certifications. For example, many service-industry positions require food or beverage permits. If your role requires training, medical exams, or testing, your employer must cover those expenses.
Broken Items and Cash Shortages
If you accidentally break equipment or supplies while working, your employer cannot deduct the cost from your paycheck. Likewise, they cannot subtract money for a cash-register shortage. These expenses are considered part of normal business operations.
Lastly, if your employer advances you money on your paycheck, make sure you sign a written agreement that clearly outlines the repayment schedule. Employers must follow that agreement and cannot take a large “balloon payment” from a single paycheck to recover the remaining balance.
Questions About Paycheck Deductions?
If you’re unsure whether your employer is taking legal deductions, speak with an employment law attorney right away. The experienced employment lawyers at Van Egmond & Heitlinger, APC can guide you through California’s employment laws and help you understand your rights. Contact us today to schedule a consultation.