Under California labor law, employers are strictly limited in when and how they can deduct wages from an employee’s paycheck. Unauthorized or improper deductions are considered a form of wage theft and are illegal. If you believe your wages have been wrongfully deducted, it’s important to understand your rights and the steps you can take to protect them.

When Are Wage Deductions Legal in California?

Employers may only deduct wages from an employee’s paycheck under specific and lawful circumstances. Legal deductions typically include:

• State and federal taxes
• Social Security and Medicare
• Court-ordered wage garnishments
• Employee-authorized deductions, such as for health insurance, retirement plans, or union dues

These deductions must be clearly listed and authorized, either by law or in writing by the employee.

Illegal Deductions Employers Cannot Make

California law prohibits employers from deducting wages for the following reasons:

• Cash register shortages
• Broken or damaged company equipment
• Theft accusations not proven in court
• Uniform or tool costs (unless certain criteria are met)
• Losses due to errors, such as a delivery mistake or customer walkout

Even if an employee makes a mistake or causes financial loss, the employer cannot deduct the cost from wages unless the employee acted with proven dishonesty, willful misconduct, or gross negligence—and even then, only in limited situations.

What if I Gave Permission for a Deduction?

Employees can authorize certain wage deductions in writing, but even with consent, employers cannot deduct for things like business losses or property damage unless the deduction complies with California law. Blanket authorizations for unspecified deductions are generally not enforceable.

What Should I Do if My Employer Made an Illegal Deduction?

If you suspect your employer has made an unlawful deduction from your paycheck, consider the following steps:

• Request a written explanation or itemized breakdown from your employer
• Keep copies of pay stubs and written communications
• File a wage claim with the California Labor Commissioner’s Office
• Consult an employment attorney to discuss your rights and potential legal action

Protecting Your Rights

California law offers strong protections to employees when it comes to wage payments. If your employer has made improper deductions or failed to pay you correctly, you may be entitled to recover lost wages, interest, and penalties. An experienced employee rights attorney can help you understand your options and advocate on your behalf.

To learn more or to speak with an attorney about your specific situation, contact a California labor law firm that focuses on wage theft and employee rights.