What California Employers Need to Know About Wage Deductions
It is important for employers in California to understand what is permitted for wage deductions to maintain compliance and avoid potential pitfalls. Employers in California may lawfully withhold amounts from an employee’s wages if: (1) the employer is required to withhold certain amounts under state or federal law , such as federal and state income taxes, as well as contributions to Social Security and Medicare; (2) the employee expressly authorizes certain deductions in writing , such as the employee’s share of insurance premiums, benefit plan contributions or other deductions not amounting to a rebate on the employee’s wages; (3) the deductions are mandated by Court order, such as child support, alimony, or debt repayment (garnishments) ; or (4) the deduction is expressly authorized by a wage or collective bargaining agreement, such as union dues or negotiated contributions. However, t here are certain deductions that California law prohibits, and, in many cases, the proh...