California Paycheck Laws

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 Can an Employer Withhold a Paycheck for Any Reason in California?

An individual who works for an employer has a right to receive their paycheck on time and in the correct amount. The obligation of an employer to its employees to pay them on time and in the amount they earn is established in California employment laws, California labor law, and federal labor law.

Employers are not permitted to fail to issue a paycheck for wages or salaries that are earned for any reason. An employer is permitted to withhold amounts of money from a paycheck for different reasons.

However, withholding an entire paychecks is not permitted under the law. If an individual feels they have been subject to unfair employment practices or employment discrimination, they should consult with a local California attorney.

When Must Paychecks Be Sent Out?

Under California law, employees should receive a paycheck at least semi-monthly. If the employee is a farm worker, their employer should pay them weekly.

Executive or professional employees may agree to be paid once a month. Their paycheck must be provided by the 26th of the month and include the entire month’s salary.

If an individual has an employment contract with their employer, it may outline the details of when and how they receive their paycheck.

Can I Recover a Withheld Paycheck?

Employers are required to issue paychecks to employees. There is no justification under the law for withholding pay that has been validly earned.

An employer may withhold a paycheck or fail to issue a paycheck to an employee as required by law. If so, an employee can file a wage claim with the California State Department of Industrial Relations. Information regarding the process of filing a wage claim and how it may be resolved is available online at the California state government website.

An employee may also be able to file a lawsuit against their employer in court to recover the wages they are due.

How Soon after Termination Must an Employee Be Paid?

If an individual is terminated, they are entitled to receive their final paycheck immediately. Employers have 72 hours to provide the final paycheck to the employee if they quit voluntarily.

However, an employee might provide more than 72 hours’ notice prior to quitting. In that case, they should receive their final paycheck immediately upon leaving their employment. California requires that employers reimburse employees for any accrued vacation days.

This rule applies to all employees, whether they have been terminated or quit. If an employer is late in providing an employee with a final paycheck, they will be fined for each day that the paycheck is not issued for up to 30 days.

The penalty for issuing a final paycheck late is the amount of the daily wage of the employee. For example, if the employee made $100 per day, then the employer will be fined $100 per day for every day that they fail to issue the final paycheck for up to 30 days.

Can My Paycheck Be Garnished?

If an employee owes money to another individual or company for debts, for example, medical loans, the individual or company may sue the employee. If the individual or company is successful in their lawsuit against the employee, they can request that a court garnish the employee’s wages.

This involves obtaining a court order for a wage garnishment to the employer and requesting that the employer take the money out of the employee’s paycheck and provide it to the court or an intermediary agency, which then turns it over to the creditor of the employee.

For certain debts, a court order is not required, and garnishment may be started without a lawsuit or court order. These types of debts include:

  • Unpaid taxes;
  • Unpaid child support;
  • Student loans that are in default or past due.

Under California law, employers are not permitted to deduct money from an employee’s paycheck for broken or damaged products or for tools that are used on the job. In the State of California, the law recognizes that an accident may occur when an employee is performing their job, and the cost of errors and accidents cannot be placed on the employee.

Employers can only deduct money from an employee’s paycheck to cover the cost of damaged items if they are able to show that the employee damaged the item on purpose. It may be difficult for an employer to show this, which is why they are not automatically permitted to take the money from the employee’s paycheck.

What Else Do I Need to Know?

California laws also require that every paycheck include ten items of information. The information required under the law for a paycheck includes:

  • The gross amount that was earned by the employee during the pay period;
  • The total hours worked except for salaried workers;
  • All of the deductions that have been taken from the employee’s gross pay;
  • The net wages that were earned after the deductions are subtracted;
  • The employee’s name;
  • The last four digits of the employee’s Social Security Number;
  • The days worked;
  • The name and address of the employer;
  • The amount of accrued leave;
  • All hourly rates that apply;
  • The hours worked; and
  • If the employee is paid on a piece-rate basis, the number of piece-rate items that were created.

In addition, there are a number of deductions that employers are permitted to withhold from a paycheck. In addition to garnishments that are ordered by a court or garnishments for unpaid child support, unpaid taxes, or student loans, the employer can deduct funds for the following:

There are other deductions that are expressly forbidden by law, including:

  • Tips: An employer is not permitted to deduct any amount from an employee’s wages because of tips left for the employee by customers;
    • An employer is not permitted to collect or take tips left for employees;
  • Photographs: If an employer requires photographs from an applicant or an employee, the employer has to pay for the cost of getting the photograph;
  • Uniforms: If an employer requires an employee to wear a uniform on the job, the employer must pay for it; and
  • Medical exams: If an employer requires employees to have pre-employment physical exams, the employer has to pay for it and is not permitted to deduct the expense from the employee’s paycheck.

Employers are allowed to make the following deductions from an employee’s paycheck:

  • Deductions required by law, for example, tax withholdings;
  • Deductions expressly authorized by the employee in writing, such as those for:
    • insurance premiums;
    • union dues;
    • retirement contributions;
  • Deductions authorized by collective bargaining agreements.

Employers can also deduct money from an employee’s paycheck if the employee shows up to work late. The deduction cannot be more than the proportionate wage that the employee would have earned during the time that was actually lost.

For a loss of time less than 30 minutes, however, an employer can deduct a half-hour’s wage. For example, if the employee earns $12.00 per hour and comes to work 40 minutes late, the employer can deduct $8.00 from their paycheck.

Where Can I Find the Right Lawyer?

You are entitled to receive your paycheck. If you have not received your paycheck, you should consult with a California employment lawyer.

Your lawyer can help you obtain your unpaid wages, whether you have not received a portion of your paycheck or your entire paycheck. If you believe that deductions have been taken illegally or other unjustified withholdings have been taken from your paycheck, your employer can help you.

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