Are deductions from wages allowed under employment contracts?

In California, employers are generally allowed to make deductions from an employee’s wages if the deductions are authorized by state or federal law. Employers may also be allowed to make deductions for taxes, health insurance premiums, or other types of payments if the employee has authorized them in writing. Moreover, an employment contract may also allow deductions from an employee’s wages. These deductions may be used to cover costs such as the costs of uniforms, tools, or supplies that the employee may require in order to complete his or her job duties. In these cases, the employer must obtain written authorization from the employee before making any deductions. At the same time, employers in California are prohibited from making deductions from an employee’s wages for any reason not authorized by law or the employee’s written agreement. This includes deductions for losses resulting from damage to property or equipment, shortages of cash, or errors in accounting. In addition, employers may not withhold an employee’s wages or impair their earning capacity as a disciplinary measure. Finally, it is important to note that an employer may not deduct more from an employee’s wages than what is authorized by law or their written agreement. In such cases, the employee may be able to take action in court to recover any wages that were unlawfully deducted.

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