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Employer Resource Institute
Home | Deductions from Pay
 

Deductions from Pay

Back to Minimum Wage & Overtime
Complete Topic List


Wage and Hour: New Decision Says Corporate Officers May Be Held Personally Liable for Unpaid Wages
October 2009
In 2005, the California Supreme Court ruled that under California law, individual owners, officers and managers cannot be held personally liable for unpaid wages owed to employees. Unfortunately, a recent ruling from the Ninth Circuit Court of Appeals--which covers California--makes clear that the same isn't true under federal law . . . more
Compensation: Why Pay Reductions Must Be Considered Carefully; Compensation Adjustment Checklist
September 2009
Indications are that the economy is improving, but very slowly. Many employers that have held out until now are starting to contemplate pay reductions, either for the employees who survived layoffs or . . . more
Tipped Employees: Recent Developments on 'Tip Pooling' and a Sample Gratuity Policy
August 2009
Over the last year, there have been a flurry of court decisions involving who owns gratuities that are paid to employees and the rules that apply to "tip pooling." We'll tell you the current state of the law and provide a sample gratuity policy. . . . more
Wage Overpayments: Labor Commissioner Says Employers Can Deduct Overpayments from an Employee's Next Paycheck, but Some Strict Rules Apply
February 2009
Suppose your payroll system pays nonexempt employees for an assumed number of hours, even when their timesheets for that pay period haven't yet been submitted. Once you finally receive the time-sheets, what recourse do you have if you find one or more employees actually worked less than the assumed, and paid, amount? Can you deduct the overpayment from a worker's next paycheck? And, does the employee's submitted electronic timesheet amount to a written authorization for the deduction? This was the scenario laid out in a recent employer request for an opinion from the California Division of Labor Standards Enforcement (DLSE). . . . more
Wage and Hour: Court Approves Training Costs Repayment Agreement, But Dings Employer for Recouping the Debt from Final Paycheck
September 2008
Can you require employees to sign an agreement promising that they'll repay the costs of their new-hire training if they don't remain employed with you for a minimum length of time? . . . more
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
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