What steps should I take if my employer makes illegal deductions from my paycheck in California?
If your employer makes illegal deductions from your paycheck, you should gather your pay records and file a wage claim with the California Labor Commissioner's Office to recover the unpaid wages.
Here are the steps you should take:
Step 1: Collect Your Documents
Gather all relevant paperwork. This includes your pay stubs, your original offer letter or employment contract, any employee handbooks, and any written communications (like emails or memos) about the deductions. Highlight the specific deductions you believe are illegal.
Step 2: Send a Written Request to Your Employer
While optional, it is wise to first send a clear, written request to your employer's Human Resources department or your direct manager. In the letter or email, state the amount you believe was illegally deducted and formally request repayment and a correction on future paychecks. This creates a valuable paper trail.
Step 3: File a Wage Claim with the Labor Commissioner
If your employer does not repay you, you must file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner's Office. You can file the claim form online at the DIR.ca.gov website or by mail. You generally have up to three years from the date of the illegal deduction to file this claim.
Step 4: Participate in the DLSE Process
After you file, the DLSE will schedule a settlement conference with you and your employer. The goal is to resolve the dispute without a formal hearing. If no settlement is reached, your case will proceed to a hearing where a hearing officer will make a final decision. Be prepared to present your documents and explain your case at both stages.
Important details and nuances:
Under California Labor Code sections 221 and 224, an employer cannot deduct for cash shortages, broken equipment, or business losses from your wages. Authorized deductions are limited to taxes, court-ordered garnishments, or items you have specifically authorized in writing for your benefit, such as health insurance premiums. If you have been fired or have quit, you may also be entitled to "waiting time penalties" under Labor Code section 203, which can equal up to 30 days of your regular pay.
Warnings and limitations:
It is illegal for your employer to retaliate against you for filing a wage claim. If they fire, demote, or otherwise punish you, you can file a separate retaliation complaint with the Labor Commissioner. The DLSE process can take several months to a year to complete.
This is general information and does not constitute legal advice. For complex situations, especially those involving significant amounts or potential retaliation, you should consult with a qualified California attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 13, 2025
Employment Law
Worker rights, wages, and employment regulations
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