If you have ever received a paycheck that was for less than you expected, it was likely because there were deductions from your pay. Some deductions are lawful, or even required by law, like FICA (Social Security and Medicare taxes) and income taxes. Other types of lawful deductions include garnishments and deductions that you have agreed to in writing or through a collective bargaining agreement, like payments for health insurance or contributions to a benefit plan. Employers in California may also deduct wages from employees’ pay if they are late to work, in proportion to the time lost.

However, sometimes employers make unlawful deductions from employees’ paychecks. These improper deductions from pay can take a significant bite out of income, especially for hourly workers. How do you know if an employer has the right to make certain deductions from your paycheck? And if an employer makes an unlawful deduction from your pay, what can you do about it?

What are Unlawful Wage Deductions?

As a general rule, California employers are prohibited from collecting or receiving an employee’s wages that have already been paid. The following examples are common, but unlawful, reasons that employers may make a deduction from an employee’s pay:

• Overpayment of wages in a previous pay period
• The employee accidentally damaged company property
• The employee was responsible for an accidental shortage of cash in the register
• The employee works on commission, and customers returned purchases for which the employee had been paid commission
• The employee received a gratuity and the employer deducted from pay in the amount of the gratuity
• To cover the cost of a uniform employed for employment
• To cover the cost of a physical or medical examination that is required for employment
• To cover the expense of photographs required for employment
• To cover the cost of a bond required to apply for the job
• For necessary business expenses incurred by the employee
• To punish or discipline the employee for some workplace infraction (except for lateness for work)

What to Do if Your Employer Makes an Improper Deduction From Your Pay

Many employees don’t know when a deduction from pay is unlawful. For instance, they may think it is normal for a company to take money out of their pay for a uniform or if their cash register is short at the end of a shift. That’s why it’s so important to understand your rights as an employee.

If you believe your employer has made an improper deduction from your paycheck, there are things that you can do. You can file a claim through the California Division of Labor Standards Enforcement. You might be worried that if you file such a claim, your employer might retaliate against you by firing you. That would also be illegal.

Another option is filing a lawsuit against your employer for unlawful deductions from pay. It’s likely that if your employer is making improper deductions from one employee’s pay, they are doing it to others as well. The amount your employer is unfairly keeping from the employees who earned it could add up to a lot of money. The only way to stop it from happening to current and future employees might be for the employer to face consequences from a lawsuit.

How The Graves Firm Helps Employees

The attorneys of The Graves Firm focus on representation of employees, but have extensive experience in past positions at large respected law firms that represented employers. Most attorneys who represent employees lack that background. We believe that working with attorneys who know how our opponents think offers our clients a significant advantage.

Our experience shows in our results. The Graves Firm has secured over $100 million from lawsuits against California employers. Our background is only part of the reason for our success. We choose to maintain a smaller caseload than many other firms in the interest of giving our clients and their legal matters the proper attention. We choose to work with clients who have strong claims, and whose successful cases will make a real difference for them and other employees.

If you believe that your employer has made improper deductions from your pay, you are probably not the only employee at your workplace to whom that has happened. By filing a lawsuit, you may help other employees who have been taken advantage of. You may not be certain that your employer is violating the law, but you don’t have to figure it out on your own. We invite you to learn more about our attorneys, our services, and our track record, and to contact The Graves Firm to schedule a consultation.