Final Pay Check Deductions

California employers may make deductions from wages if:

There is a law allowing them to do so

A deduction is expressly authorized in writing by the employee to cover insurance premiums, hospital or medical dues, or other deductions not amounting to a rebate or deduction from the standard wage

Or a deduction to cover health and welfare or pension plan contributions is expressly authorized by a collective bargaining or wage agreement.

When a deduction is taken to repay a debt owed to an employer, there must be express written consent from the employee. However, the deduction can’t reduce net pay below the California minimum wage. Finally, even when you have obtained written permission to make paycheck deductions for the repayment of a debt, there can’t be a “balloon payment” from the final paycheck.

Final Paychecks
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