Can They Take That Out of My Check?
How time flies! The holidays are looming and that means year end and too soon TAX TIME! Most 1099 contractors are well versed and ready to add up their deductions, but what about employees? Are there any deductions you should be aware of? The answer is YES! You need to keep an eye on your employer’s deductions from your paycheck.
Certainly, your employer not only has the right to, but is required by law to make some deductions from your check, including income taxes and social security. The problem comes when an employer oversteps this mandate and tries to deduct items not allowed by the labor code. This amounts to stealing from their employees and trying to pass along their cost of doing business to the employee. At United Employees Law Group we fight for employees who have been cheated.
Here I have a few of the most common unlawful deductions employers tend to make. Time to check your paycheck.
Deductions ALLOWED by CA Law:
The following are the legal monies your company can and should deduct from your check:
-Money required by the government, either State or Federal, including income taxes.
-Money previously approved and agreed to IN WRITING, which may contribute to health coverage, retirement accounts, or return of a draw on wages. The labor code dictates how much can be deducted from any one check, and the exact amounts and dates must be in writing and agreed to ahead of time.
-Deductions pertaining to insurance, welfare or pension contributions for members of a union, or those employees included in a collective bargaining agreement.
Deductions NOT ALLOWED by law:
Outside of the above mentioned items, it is not legal for your employer to deduct any of the below items from your check:
-Tips which were paid to you by a customer. When there is a well defined, existing policy for pooling tips, this may be done. Any other money left for an employee by a patron is exactly that, and the company is entitled to NO PART of it. The company cannot deduct tips from your hourly wage claiming it is part of your minimum wage.
-Any photographs required by your company for any reason, whether while you are employed or in order to be hired, must be paid for by the company.
-If you’re an employee and not a contractor, and your employer requires an insurance policy or bond for your employ, such a policy is the responsibility of the employer to purchase and maintain.
– Uniforms are one of the most contested on this list. There are arguments back and forth as to what exactly is considered a uniform. Regardless, the letter of the law dictates that the employer must pay for a uniform which is required for work. For some employees this can be a very big investment and is worth the fight.
-Your employer is required to cover ALL costs of doing business. If you are an employee and not a contractor, you cannot be asked to pay for any expenses out of your pocket. You must be reimbursed for any and all monies you pay out in order to perform your job or help anyone else complete theirs. This may include food for staff or clients, part or all of a cell phone or internet bill, mileage and gas for travel required by your job, not inclusive of a regular commute unless you work off site and go directly to a job site from your home. The company you work for is the entity who has the right to write off the expenses, therefore they must actually PAY THEM.
-Any type of health screening, drug testing, TB tests, or physical which your company requires, they must pay for; the cost of this cannot be passed on to the employee.
If you have had these or similar deductions made that you believe to be unlawful, you must act quickly to secure your rights. You have only four years in California to pursue the reimbursement of such monies. When you contact UELG we will carefully examine your situation and determine just what type of claim or claims you may have. In many cases we see that unscrupulous employers tend to cut corners in more than one area.
My team is waiting to answer your questions; whether the problem is with a past or current employer, we will handle your case with care and confidentiality, and we always work for free until we collect for you.
Photo Credit: Shutterstock/ Billion Photos