When can an employer legally deduct wages from an employee's paycheck?

Under California law, employers are allowed to deduct wages from an employee’s paycheck in certain situations. Firstly, deductions must be authorized in writing by the employee. Secondly, the deduction must be for the employee’s benefit, such as to pay for insurance premiums, or to reimburse the employer for damage caused by the employee. Thirdly, deductions must be reasonable and necessary and not impose a financial burden on the employee. Additionally, employers are allowed to make deductions to comply with state or federal laws, for example, deductions for Social Security and Medicare taxes. Employers are also allowed to deduct for payment of any valid debts owed to the employer, such as loan repayment, as long as the employee has given written authorization. However, an employer must not make deductions from wages for items that are not authorized by the employee in writing or are not legally required. An employer is not allowed to deduct wages to cover cash shortages, breakage, or loss of equipment, unless the employee has personally caused the loss. Moreover, employers cannot deduct wages for disciplinary actions such as suspensions or to punish the employee. In conclusion, employers are allowed to make deductions from an employee’s paycheck in certain situations. Deductions must be authorized in writing by the employee, must be necessary and reasonable, must comply with state or federal law, and must not be used to punish the employee.

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When can an employer legally deduct wages from an employee's paycheck?

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