Deductions From Pay

Under California law, it is illegal for an employer:

  • To make deductions from an employee’s wages due to a mistake or accident resulting in cash shortages, property damage or breakage. According to California courts, mistakes are inevitable and businesses have to bear such losses as normal business expenses.
  • To deduct expenses such as workers compensation, insurance or claims from an employee’s check.
  • To take a gratuity that was left for an employee. However, tip sharing or tip pooling is allowed if it is pooled by the employees who directly support customers.
  • To require employees to pay for uniforms
  • To required employee to pay any business expenses
  • To required employee to pay for a medical or physical examination.


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