California Wage Deductions - Employee Damages



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An employer cannot deduct from an employee's wages any amount to compensate the employer for damages caused by the employee's negligence.

Law Review

Employee Debts Cannot Be Deducted

An employer cannot deduct from the employee's check a debt owed by the employee to the employer. This deduction cannot be made even if the paycheck is a final check, and even if there is a written agreement between the employee and employer to pay the debt in this manner. Barnhill v. Robert Saunders & Co. (1981) 125 Cal.App.3d 1.

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  • Can an employer deduct from an employee's wages damages caused by gross negligence, wilful misconduct, or dishonesty?


  • How can an employer recover damages negligently caused by an employee?



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