When someone works for a California employer, they have the right to receive their paycheck in the correct amount and on time. California employers are required to pay workers in the amount they earned and on time under California employment law, California labor law, and federal labor law.
An employer cannot decline to issue a paycheck for salaries or wages that are earned. Employers, however, can withhold certain amounts from workers’ paychecks for specific reasons.
Withholding a worker’s entire paycheck, however, is not allowed under the law. If a worker believes they have faced unfair employment practices or employment discrimination, they should consult with a California employment lawyer.
Is It Illegal To Withhold Wages From an Employee?
As noted above, employers are legally required to provide the salary or pay that is earned by a worker within the time period that is provided in their employment contract. Employers are not permitted to hold back earned paychecks.
However, there are certain situations in which employers are allowed to deduct amounts from a paycheck, which may include:
- Voluntary deductions and withholdings: These include authorized deductions and withholdings that the worker has authorized, such as:
- 401(k) contributions
- Charitable contributions
- Union dues
- Debts owed to the employer
- Withholding for health or disability insurance premiums
- Income withholding orders: When there is a court-ordered payroll deduction, employers have to comply with the court order.
- Common examples of court-ordered deductions include:
- Unpaid taxes
- Alimony
- Child support
- Other debts that are owed to the government, including federal student loans
- Losses attributable to the employee: There are certain states that allow wage withholding based on replacement costs from damaged or broken property
- It is important to note that, the deduction will become against the law if it causes the worker’s wages to fall below the minimum wage that is set in that state
- Deductions considered for the benefit of the employee: Certain states allow deductions for certain items, so long as they do not cause the worker’s wage to fall below the state’s minimum wage, including:
- Tools
- Uniforms
- Lodging
- Meals
- Taxes and other legally mandated withholding: Employers are required to take standard withholdings for local, state, and federal income taxes as well as other payroll tax deductions required by law
If a worker thinks they may be subject to an unlawful withholding of wages based on failure to pay overtime or withholding paycheck, an individual should reach out to a California lawyer.
What Is the Difference Between Exempt Employees and Non-Exempt Employees?
Whether an employee is exempt or non-exempt can impact the deductions that can be made as well as whether the employee qualifies for overtime and minimum wage protections. There are some states that have a lower minimum wage for workers who receive tips in addition to their salary or hourly wage.
There are certain categories of workers who are often paid an hourly wage less than the minimum wage, and who are considered non-exempt, including:
- Bartenders
- Valets
- Drivers
- Restaurant servers
Employees who are exempt are typically not entitled to minimum wage or overtime pay under the Fair Labor Standards Act (FLSA). These employees usually hold positions in management, administration, executive work, outside sales, computer-related, or other professions that require specialized knowledge.
The specific details will be different in each state. However, if an employee falls into these categories, the worker is paid a salary, and they earn a minimum of $1,128 per week or $56,656 annually as of 2025, they are considered exempt.
The rules that apply to non-exempt employees are different from those that apply to exempt employees. An employer that is covered by the Fair Labor Standards Act (FLSA) has to pay non-exempt workers a minimum wage.
This means the employer cannot take steps that reduce the worker’s pay to an amount that falls below minimum wage. Whether or not a worker is non-exempt or exempt, under the 1988 Family Support Act, an employer can withhold funds from wages and salaries.
Under this Act, all child support orders have to include an automatic wage withholding order. This means that an employer is required to deduct child support from their worker’s wages when they are presented with an Income Withholding for Support order.
For more information about exempt and non-exempt employees in California, an individual should schedule a lawyer consultation in California.
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What Are the Consequences for Wrongfully Withholding Salary?
An employer will sometimes intentionally miscategorize an employee as exempt to avoid minimum wage and overtime requirements. This practice is both unethical and illegal.
If an employee believes they should be classified as non-exempt, it is important for them to consult with an employment lawyer or government agency that regulates wages and hours. Employees do have options to recover wages that their employer wrongfully withheld.
Examples of actions that an employee can take to remedy their wrongful withholding issue include:
- Administrative complaint: These types of complaints can be filed with agencies that regulate wages and hours.
- There are federal and state government agencies that enforce wage and hour laws.
- An employee may be able to file a complaint with either of these categories of agencies.
- Complaint in a court of law: Lawsuits can be filed in a court of law against an employer who withholds salaries or wages without justification.
- Report to a local prosecutor: In certain circumstances, a local prosecutor may file criminal charges against an employer who illegally withholds wages.
When a government agency receives a complaint of an employer illegally withholding pay, it will investigate the allegations and take action when needed and justified. If the agency finds that the employer violated the law, the employee may be able to recover back wages and damages.
The agency may also be able to negotiate a settlement with the employer on the employee’s behalf. The government agency may also file its own lawsuit against the employer if they are withholding wages on a large scale.
When the agency finds that the employer intentionally withheld wages, it may file criminal charges. If an employer is convicted, they may face punishments such as incarceration, criminal fines, or both.
In civil lawsuits, unpaid wages and monetary compensatory damages may be recovered. In addition, the employer may be required to pay the employee’s lawyer’s fees and costs.
Do I Need an Attorney for Issues Involving Withheld Salary?
If you are a California employee, it is important for you to be aware of what your employer can legally withhold from your pay and what they cannot. If you have any questions or concerns about your paycheck, it can be helpful to consult with a California employment lawyer.
Your lawyer will be able to explain the specific laws in California as well as applicable federal laws. They will be able to explain the various rules and regulations regarding salaries, wages, and withholdings.
Your employment lawyer will be able to advise you which California agency can help you recover your wages that have been illegally withheld. They can guide you through the complaint process and represent you when you appear before an agency or in court.
Your employment attorney can also advise you about garnishments and other court-ordered deductions. You can use the free lawyer matching services provided by LegalMatch today to find a California lawyer near you who can help you resolve your salary issue.
