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An employer can lawfully withhold amounts from an employee’s wages only in the following 3 situations:
1. When required or allowed to do so by state or federal law, or
2. When a deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions not related to a rebate on the employee’s wages, or
3. When a deduction to cover health, welfare, or pension contributions is expressly authorized by a wage or collective bargaining agreement.
The ability of an employer to deduct money from an employee’s wages due to a cash shortage, breakage, or loss of equipment is specifically regulated by the Industrial Welfare Commission Orders and limited by court decisions.
David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/
