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Paycheck Deductions: Where is Your Money Going?

Paycheck Deductions: Where is Your Money Going?

Photo Credit: Shutterstock/ Billion Photos

Money gets deducted from each paycheck for various reasons, but are all of them legal? Most employees know that the federal law mandates deductions from his or her paycheck for Social Security and federal income tax. These are normal deductions that the employee must authorize. Other deductions, except when a deduction is required to comply with a court judgment such as wage garnishments for child support payments, may require you to take a closer look.

An employer may deduct money for items that an employee has voluntarily authorized in writing such as union dues, insurance premiums, and charitable contribution. These deductions happen with the employees consent; however, other deductions should be closely scrutinized.

Some deductions are illegal, and some of the frequent unlawful deductions made by employers include:

  • Employee gratuities given for service to the public cannot be taken by the employer from the employee’s wages.
  • Cost of employee photographs that are required by the employer.
  • The cost for a bond of an employee must be paid by the employer.
  • The employer must pay for the costs of uniforms that the employee is required to wear. This includes wearing apparel with a distinctive design or color.
  • Medical exams required as a condition of employment or while employed must be paid for by the employer. This also covers exams required by federal or state law or regulation, or by a local ordinance.
  • The cost of meals cannot be deducted from an employee’s paycheck if they do not want to eat the food.
  • An employer cannot legally deduct money from an employee’s paycheck to cover the loss of company property, breakage, or shortages even if these are the result of simple negligence. California courts have held that these problems are just the cost of doing business. This means that the employee does not have to pay for accidents or when a customer leaves without paying their check.

However, if the employer can show that a loss of any type is caused by a willful or dishonest act or by gross negligence on the part of the employee, then the employer may have the right to deduct the loss. It should be noted that the employer cannot wantonly charge or assume that the employee’s actions were so grievous as to meet this standard.

If an employee believes that illegal deductions have been made from their wages, then they can file a complaint with the Labor Commissioner’s Office. The complaint should include all of the relevant facts and pertinent information. The complaint will be assigned to a Deputy Labor Commissioner who will review the file and arrange a conference or a hearing. Dismissal of the complaint is also a possibility. If this occurs, then the employee will not receive any help in recovering lost wages.

If you, or someone you know, are facing legal issues in the workplace United Employees Law Group has answers, Call Today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.


Photo Credit: Shutterstock/ Billion Photos

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