The Law at Work: The risky business of employer deductions from final pay
In his The Law at Work column in the San Diego Union-Tribune, Shareholder Dan Eatonaddresses whether or not an employee can deduct the cost of lost or stolen equipment from an employee’s final wages. As debts go, the wages owed an employee enjoy a special status under California law. The only authorized deductions are those required or permitted by state or federal law, such as taxes, insurance premiums, hospital or medical dues, etc. However, California wage orders also say that “an employer with prior written authorization of the employee may deduct from the employee’s last check the cost of” unreturned company equipment, but the California Chamber of Commerce suggests that those disagreements are best resolved in a small claims or other court proceeding against the employee, rather than a deduction from wages owed that employee. According to Dan, an employer should resist the temptation to deduct the cost of unreturned company property from an employee’s final paycheck in order to avoid the risk of a penalty that may exceed the value of the unreturned property.
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