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Q.If I damage company property or lose company money, can my employer deduct the loss from my wages?
A.No. California case law provides that the employer must consider losses that occur by accident or simple negligence a cost of doing business. If an employee accidentally drops some dishes, accepts a bad check, or has a customer that walks out without paying that is a cost of doing business. The employer cannot deduct such losses from an employee's paycheck.
However, if an employee purposely throws dishes or steels money from the cash register, the employer may have the right to deduct the loss from the employee’s wages. The law is unclear in this area as California's Industrial Wage Orders seems to suggest it is okay while California Labor Code Section 224 says it is not. We therefore suggest you contact a local attorney before opting to deduct the cost of any loss or damage from an employee's paycheck.
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