California paycheck deductions fall into just three legal categories: withholdings required by law, deductions you authorized in writing, and orders from a court. Anything else is off-limits. Labor Code Section 221 makes it illegal for an employer to take back wages already paid, and the state reads that protection broadly enough to block most of the “chargebacks” employers try to write into handbooks or signed agreements. If a deduction on your stub doesn’t fit one of the three categories, you have up to three years to file a wage claim with the Labor Commissioner.
Deductions Required by Law
Every paycheck in California carries mandatory withholdings that fund tax and public benefit programs. Federal income tax comes off based on what you filed on your W-4.1Internal Revenue Service. Topic No. 753, Form W-4, Employees Withholding Certificate2Social Security Administration. Contribution and Benefit Base3Internal Revenue Service. Topic No. 560, Additional Medicare Tax California State Disability Insurance (SDI), which also funds Paid Family Leave, is withheld at 1.3% of all wages in 2026 with no earnings cap.4Employment Development Department. Contribution Rates, Withholding Schedules, and Meals and Lodging Values
These are the deductions you can’t opt out of, and they should always appear as separate line items on your pay stub.
Deductions You Authorized in Writing
Anything outside the mandatory list needs your express, written consent before it can come out of your check. Labor Code Section 224 sets the limits: authorized deductions can cover things like insurance premiums, medical dues, or similar contributions, but they cannot operate as a way to funnel your standard wages back to your employer.5California Legislative Information. California Code Labor Code 224
Typical voluntary deductions include health, dental, and vision premiums, 401(k) or other retirement contributions, and union dues under a collective bargaining agreement. Repayment of a loan or wage advance your employer gave you is also allowed if you signed a written agreement before the deductions began.
Two limits catch people off guard. First, even with prior written consent, your employer cannot deduct the entire remaining balance of a loan from your final paycheck; California treats that as an end-run around wage protections. Second, you can revoke authorization for most voluntary deductions at any time by giving written notice. Retirement plan changes may follow the plan’s own election rules, but the underlying principle is that you control what comes out of your check beyond what the law requires.
Deductions Your Employer Cannot Make
This is where California diverges sharply from what many employers assume. Labor Code Section 221 forbids an employer from collecting or receiving from an employee any portion of wages already paid, and courts have used that section to strike down a range of common charge-back practices even when the worker signed something agreeing to them.6California Legislative Information. California Code LAB 221 – Payment of Wages
Cash Shortages, Breakage, and Lost Property
Your employer cannot dock your pay for a register shortage, broken equipment, or lost company property that resulted from ordinary accident or simple carelessness. A deduction is only allowed if the employer can prove the loss came from a dishonest or intentional act, or from gross negligence, and the state labor agency has cautioned that a bare accusation is not enough to justify the deduction.7Department of Industrial Relations. Deductions From Wages The same principle covers damage to company vehicles, customer walkouts, and other losses that flow from normal business risk. A delivery driver’s fender bender, a server’s skipped tab: the employer absorbs those costs.
Uniforms, Tools, and Job Expenses
If your employer requires you to wear a uniform or use specific tools, the employer must pay for them. Deducting the cost is unlawful even if you signed a form authorizing it.7Department of Industrial Relations. Deductions From Wages “Uniform” here means any distinctive clothing or accessories your employer dictates, not just logoed shirts.
Labor Code Section 2802 goes further and requires employers to reimburse all necessary expenses you incur doing your job. That includes mileage for work-related driving and cell phone costs when you use a personal phone for business.8California Legislative Information. California Code Labor Code 2802 Failing to reimburse is itself a violation, and you can recover interest plus attorney’s fees.
Overpayments Your Employer Made by Mistake
If your employer accidentally paid you too much in a prior period, it cannot simply take the overage out of a current check. In CSEA v. State of California, the court found it unlawful to deduct from current pay to recoup salary advances made in error.7Department of Industrial Relations. Deductions From Wages The employer’s remedy is to ask for repayment or pursue collection through legal channels.
Court-Ordered Garnishments
When a court or government agency issues a garnishment order, your employer must comply. Your employer can charge you $1.50 per payment to process each garnishment.9California Legislative Information. California Code of Civil Procedure 706.034
Child and spousal support orders carry the highest priority. Federal law caps child support withholding at 50% of your disposable earnings if you’re supporting a second family, and up to 60% if you’re not. If you’re more than 12 weeks behind, an additional 5% can be added, pushing the maximum to 65%.10U.S. Department of Labor. Fact Sheet #30 – Wage Garnishment Protections of the Consumer Credit Protection Act Disposable earnings here means what’s left after mandatory withholdings like taxes, Social Security, Medicare, and SDI.
For most other debts, including credit card judgments, personal loans, and medical bills, California’s garnishment formula under Code of Civil Procedure Section 706.050 applies. The maximum your employer can withhold is the lesser of:
- 20% of your disposable earnings for that pay period, or
- 40% of the amount by which your disposable earnings exceed 48 times the state minimum hourly wage
With California’s 2026 minimum wage at $16.90 per hour, 48 times that figure comes to $811.20 per week.11California Legislative Information. California Code of Civil Procedure 706.05012Department of Industrial Relations. Minimum Wage If you work in a city with a higher local minimum wage, that local rate replaces the state figure and shrinks the garnishable amount further. State and federal tax levies follow their own rules, generally take priority over judgment creditor garnishments, and yield to existing child support orders.
What Your Pay Stub Has to Show
California requires an itemized wage statement with every paycheck. Labor Code Section 226 lists the required contents: gross wages, total hours worked, all deductions, net wages, the pay period dates, and the employer’s name and address.13California Legislative Information. California Code LAB 226 Voluntary deductions you authorized can be combined into a single line, but each mandatory deduction and each garnishment should be visible.
If your pay stub doesn’t itemize deductions, or the math doesn’t add up, that’s worth investigating. Employers must retain payroll records, including all additions to and deductions from wages, for at least two years.14U.S. Department of Labor. Fact Sheet #21 – Recordkeeping Requirements Under the Fair Labor Standards Act
Filing a Wage Claim and What You Can Recover
An employer who unlawfully withholds wages faces civil penalties under Labor Code Section 225.5: $100 per employee for a first violation, and $200 per employee plus 25% of the amount illegally withheld for repeat or intentional violations.15California Legislative Information. California Code LAB 225.5 If the illegal deduction shows up in your final paycheck after you quit or were terminated, and the employer willfully withheld the wages, you may also be entitled to waiting time penalties equal to your daily rate for each day the wages remain unpaid, up to 30 days.16California Legislative Information. California Code Labor Code 203
Wage claims go through the California Division of Labor Standards Enforcement, the Labor Commissioner’s Office. You can file online or by mail, and you have three years from the date of the illegal deduction. The process usually starts with a settlement conference. If that doesn’t resolve the dispute, it moves to a hearing where a state officer reviews the evidence and issues a decision.17Department of Industrial Relations. How to File a Wage Claim Save every pay stub, every written authorization, and any messages about the deduction. Those records are what turn a suspicion into a claim you can win.