What you need to know about Wage Withholdings in California

All businesses in California must post California labor law poster in order to be in compliance with state and federal laws. But these posters only contain so much information. There are many other labor laws that apply and are important to know when it comes to protecting your rights. Here, we’ll take a look at some of the additional laws that apply in the workplace.

Employers in California can withhold wages from an employee if it is dictated by state or federal law. In the case that an employee’s wages need to be garnished or withheld for tax purposes, the employer will be notified to do so. Other deductions include insurance (such as health or dental) or benefits (such as 401K). In this case, the employer must have the employee’s written consent. If deductions need to be made to an employee’s paycheck regarding the shortage of cash on their shift, or breakage of equipment, that action must be mandated by the courts. The courts must prove that the action was a willful or dishonest act that resulted in gross negligence. The employer can still pursue disciplinary action against the employee.

Employers in California cannot deduct tips or gratuities, photographs, bonds, uniforms, business expenses or medical or physical examinations from an employee’s paycheck. If an employer requires a bond, photograph or exam, that expense must be covered by the employer.

If your employee makes an unlawful deduction from your paycheck, you have the right to file a wage claim with the Division of Labor Standards Enforcement (DLSE) or to file a lawsuit and to pursue the matter in a court of law. If you file through DLSE, your claim will be assigned to a Deputy Labor Commission who first tries to justify, and then mediate the claim between the two parties before the issue escalates to a formal hearing, where each party has the right to be represented by an attorney, present evidence, testify on their behalf, have witnesses testify, and cross examine witnesses. Within fifteen days of the hearing an (ODA) order, decision or award will be filed. 

If your employer retaliates, discriminates against you or fires you because of a claim that you have filed, you also have the right to file a discrimination or retaliation claim or lawsuit.

It is critical to know your full employment rights and protections under the law. Labor law posters are the first thing you should reference should you have any questions. There are both state and federal labor law posters, and federal laws supersede state and local laws, when the two are in conflict.