Making a living can be fulfilling, especially when the pay is fair. A person’s earnings are usually predictable based on the discussions and negotiations during the hiring process. An employment arrangement should also have a contract indicating how much an individual will receive.
This agreement should also include information about any deductions the employer will take. These items are typically in various employment-related documents, including pay stubs. State law still regulates these deductions based on the employee and employer’s setup or circumstances. In California, the following can be lawful:
- Deductions to pay for taxes
- Garnishments imposed by federal or state law, including those related to legal proceedings or loans
- A portion of the employee’s earnings to cover insurance premiums for medical purposes
- Payments that go to the employee’s retirement or welfare benefits and pension
Deductions that do not fall under these categories could be unlawful, depending on the situation. Employers usually require authorization from the employee before deducting any amount from their wages. If there is an unfamiliar item in a pay stub, it could be a good enough reason to notify the employer. It might be a payroll mistake, which is often easy to correct. In other scenarios, it could be unauthorized, which may have legal implications.
Understanding rules related to wage deductions
When determining whether a deduction was lawful, seeking legal advice could be helpful. There are many ways a deduction can be lawful or unlawful. Sometimes, the employee is in a specific scenario where an employer can rightfully reduce the salary because of legal or financial obligations. Experienced counsel can help determine if taking legal action could be an option when there are no valid reasons behind the deduction.
