Withholdings from an employee's paycheck must comply with applicable laws, including federal and state wage and hour laws. Employers may be required to withhold certain amounts from an employee's paycheck for tax purposes, such as income taxes and Social Security contributions. Other withholdings may be authorized by the employee, such as voluntary deductions for health insurance or retirement savings.
Unlawful withholdings:
In California, employers cannot withhold an employee's paycheck for the following reasons:
- As punishment or discipline for job-related issues
- To recover damages for company property or other losses
- As a form of security for future performance
- To force the employee to resign or accept unfavorable working conditions
Exceptions:
There are some exceptions where an employer may be allowed to withhold an employee's paycheck, such as:
- To comply with a court order or other legal mandate
- To offset unpaid debts or child support obligations (subject to specific regulations)
- To recoup overpayments or advances if authorized by the employee or required by law
It's important for employees to be aware of their rights and to understand any authorized deductions from their paycheck. If an employee believes that their paycheck is being withheld unlawfully, they should seek legal advice or file a complaint with the California Department of Labor Standards Enforcement (DLSE).
