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Deductions from Pay

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Bulletin: 2008 Advanced California Employer Seminar Coming in September
July 2008
Employers handle wage and hour issues and internal investigations regularly, but even the most seasoned professionals make mistakes that can lead to expensive litigation. Be proactive by attending the Employer Resource Institute's 2008 Advanced California Employer Seminar in Irvine from September 17-19 for targeted, comprehensive training from top California experts on these troublesome topics. This isn't HR 101—you'll receive advanced, real-world information that's critical to employers in California. Visit www.employeradvice.com/aces for more details, including information on the optional pre-conference workshops covering intermittent leaves and recordkeeping. Save $100 on your registration if you sign up by August 20. . . . more
News Note: Courts Disagree on Time to Sue for Waiting-Time Penalties
July 2008
California appeals courts are in disagreement over how long an employee has to file a lawsuit to recover waiting-time penalties for delayed payment of wages when the underlying wages have since been . . . more
News Note: High Court to Review Stock Forfeiture Decision
July 2008
In the March 2008 issue of CEA, we reported that a California appeals court upheld an employee stock purchase plan that provided for the forfeiture of purchased stock if the employee terminated before two . . . more
Deductions from Pay
All deductions from an employee's wages must be made in accordance with applicable law and, when required, the employee's consent. This form spells out some of the key rules. . . . more
Employee Compensation: California Supreme Court OKs Bonus Deductions for Workers' Comp Losses and Cash Shortages
October 2007
In an important victory for employers that use bonus plans, the California Supreme Court has approved a retailer's profit-based incentive plan that made deductions for a store's workers' compensation costs, cash and merchandise shortages, and other losses. In so ruling . . . more
Family and Medical Leave: Ruling Zeroes In on Employers' Notice Obligations Under the California Family Rights Act; What You Must Do
July 2007
California Portland Cement Company, which has a quarry in Mojave, was slapped with a California Family Rights Act (CFRA) lawsuit after firing employee Michael Faust when he took a medical leave . . . more
Family and Medical Leave: Employer Can Dock "Productivity Bonus" for Employee Who Took FMLA Leave; Guidelines to Follow
November 2006
Assume you have a bonus program that rewards employees based on how many hours they work in a given year. Your program prorates bonuses for employees who didn't meet the annual hours goal because they took leave under the Family and Medical Leave Act (FMLA) as well as certain other personal leaves. Is this legal? . . . more
Wage & Hour: All About the "Safe Harbor" and How to Make It Work for You
CEA Online Exclusive
Let's assume you've taken the necessary steps to ensure that managers you have classified as exempt from overtime actually meet the state and federal requirements for the exemption. But classifying wo . . . more
Wage and Hour: DOL Nixes Deductions from Exempt Employee's Pay for Damaged Company Equipment
June 2006
Suppose one of your managers carelessly breaks his company-issued cell phone. Can you deduct the cost of replacing the phone from the manager's salary or require him to reimburse you out of pocket for the expense? According to a new U.S. Department of Labor (DOL) . . . more
Bulletin: DOL nixes salary deductions when exempt worker damages equipment
May 2006
A new opinion letter from the U.S. Department of Labor says that if an exempt employee damages or loses company-issued equipment, and you decide to dock the person's salary to pay for the loss, you risk . . . more
News Notes: Court OKs Docking Accrued Leave For Partial-Day Absences
September 2005
Last month, we reported that the California labor commissioner had, in an abrupt change of opinion, said that partial-day deductions from accrued paid leave time won't threaten an employee's status as . . . more
Exempt Employees: Labor Commissioner Changes Guidance on Vacation and Paid Time Off
August 2005
The California labor commissioner has withdrawn an existing opinion letter regarding employer-mandated use of vacation and other paid time off (PTO) for exempt employees, as well as the use of vacatio . . . more
Exempt Employees: Labor Department OKs Partial-Day Deductions from Paid Time Off Banks--But Different Rules Apply in California
May 2005
Under the federal Fair Labor Standards Act, employers generally cannot deduct from an exempt employee's salary for partial-day absences. The logic is that such deductions make it look like you're trea . . . more
Employees on Commission: Court OKs "Chargebacks" to Employees on Commissions When Sales Cancelled; Make Sure You're Doing It Right
April 2005
The Los Angeles Times employed telesales employees to sell newspaper subscriptions. The employees were paid an hourly rate plus commission, based primarily on the value of subscriptions each sold. A d . . . more
News Notes: Employer Can't Offset Paid Lunch Break Against Overtime Pay
July 2004
Michael Ballaris filed a class action lawsuit claiming that his employer, Wacker Siltronic Corp. in Oregon, improperly subtracted "paid lunch" time payments from weekly overtime compensation. Wacker c . . . more
Bulletin Item: Ruling On Deductions From Employee Bonuses Stands
May 2004
In the December 2003 issue of CEA, we reported on a California appeal court ruling challenging Ralph's Grocery Co.'s practice of subtracting certain expenses—including the store's workers' compensatio . . . more
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