In short, it depends. In California, employers generally cannot charge employees for broken or lost equipment if the damage or loss was accidental or occurred during the normal course of work. This legal protection stems from California’s strong labor laws, which aim to prevent employers from shifting business costs onto employees.
It is important to note that under California Labor Code Section 2802, an employer must reimburse employees for all necessary expenditures or losses incurred in direct consequence of the discharge of their duties. This means if an employee loses or damages equipment while performing their job duties, the employer is typically responsible for absorbing that cost, not the employee.
An employer charging for equipment could be considered an unlawful deduction from wages. However, if the loss or damage was due to the willful misconduct, gross negligence, or dishonest acts of the employee, then the employer may have grounds to seek reimbursement. Even then, the employer must still be able to prove the misconduct and cannot simply deduct the cost from the employee’s paycheck without due process. Any unauthorized deductions violate California Labor Code Section 221, which prohibits employers from taking back any part of wages already paid.
If you should have any questions regarding an employer charging you for broken or lost equipment, it is recommended to set up a lawyer consultation with a California lawyer experienced in handling employment law matters. In some cases, you may be a victim of wage theft.
Can Employers Force Payment To Cover the Loss of Equipment in California?
Once again, employers in California cannot legally force employees to pay for lost or damaged equipment unless the loss was due to the employee’s intentional misconduct, gross negligence, or dishonesty. California Labor Code Section 2802 once again requires employers to reimburse employees for all necessary expenditures or losses incurred in the course of their job duties. As such, if an employee loses equipment while performing work-related tasks, the employer must typically absorb the cost.
Additionally, California Labor Code Section 221 prohibits employers from taking back any part of wages that have already been paid. This means an employer cannot deduct the cost of any lost equipment from an employee’s paycheck without violating wage laws. Even if an employer has a policy stating that employees are responsible for equipment loss, that policy cannot override statutory protections unless the employee’s actions meet the threshold of willful or dishonest conduct.
It is important to note that employers may pursue reimbursement through civil means if they believe the loss was intentional or fraudulent, but they cannot unilaterally deduct wages or coerce payment. Any attempt to do so could expose the employer to penalties and legal claims under California’s wage and hour laws.
What Do California State Laws Say About Charging Employees for Damaged or Lost Property?
As can be seen, California law offers strong protections for employees when it comes to being charged for damaged or lost property. According to California Labor Code Section 2802, employers are required to reimburse workers for any losses or expenses that arise directly from performing their job duties.
Once again, this means that if an employee accidentally breaks or misplaces company property while working, the employer is generally responsible for covering the cost. This is true unless the damage stems from intentional misconduct, gross negligence, or dishonesty, employers cannot legally demand repayment.
It is important to also note the role of OSHA (Occupational Safety and Health Administration) with regard to damaged or lost property. OSHA mandates that employers provide safe working conditions and proper training. If there is any equipment that is damaged due to unsafe environments or inadequate instruction, the fault may lie with the employer for violating OSHA standards.
In cases where the damage results in injury, the employee may be eligible for workers’ compensation, which covers medical care and lost wages regardless of fault. This system ensures that employees are not financially penalized for accidents that occur on the job, especially when safety protocols are lacking.
For independent contractors, the rules differ significantly. Because they are not classified as employees under California law, they are not protected by Labor Code Section 2802. Contractors are typically responsible for their own tools and equipment unless their contract specifies otherwise.
If a contractor damages property, liability depends on the terms of the agreement and whether negligence can be proven. Employers must be cautious not to misclassify workers as independent contractors to avoid legal obligations, as misclassification can lead to penalties and back pay if the worker is found to be an employee.
Misclassification of employees as independent contractors is a serious issue under California law, with significant legal and financial consequences for employers. When a worker is incorrectly labeled as an independent contractor, they lose access to critical protections afforded to employees, such as minimum wage, overtime pay, unemployment insurance, and reimbursement rights under Labor Code Section 2802.
This misclassification can also affect liability for damaged or lost equipment. If a worker is wrongly classified, the employer may attempt to shift the cost of broken property onto the individual, even though the law would have required the employer to cover it had the worker been correctly identified as an employee.
It is important to note that California uses the ABC test, codified in Labor Code Section 2775, to determine whether a worker is truly an independent contractor. Under this test, a worker is presumed to be an employee unless the hiring entity can prove all three of the following:
- (A) the worker is free from the control and direction of the hiring entity in connection with the performance of the work
- (B) the work performed is outside the usual course of the hiring entity’s business
- (C) the worker is customarily engaged in an independently established trade, occupation, or business.
If any of these prongs are not met, the worker must be classified as an employee, and therefore entitled to protections like reimbursement for work-related losses. Misclassification also intersects with other legal frameworks, such as OSHA and workers’ compensation.
If a misclassified worker is injured while using faulty equipment, they may be denied workers’ compensation benefits, which are reserved for employees. Similarly, OSHA protections, such as the right to a safe workplace, may not be enforced for independent contractors, leaving them vulnerable to unsafe conditions.
Employers who misclassify workers as independent contractors not only risk violating wage and reimbursement laws, but may also open themselves to claims of unlawful treatment if they discriminate against those workers based on their misclassified status, such as denying access to benefits or enforcing unequal disciplinary measures.
Examples of common equipment damage that occur on the job include:
- A retail employee drops a company-issued tablet or phone while restocking shelves, cracking the screen
- In most instances, the employer is responsible for these damages as they occurred during the normal work of the employee
- A delivery driver accidentally scrapes the company van against a curb during a scheduled route
- Any vehicle repair costs would fall on the employer, unless the driver was not operating within the scope of their duties
- A barista spills water on a cash register while cleaning the counter, causing it to short-circuit
- This accidental spill would also have the costs for repair falling to the employer, unless the employer can show they intentionally damaged the equipment
Do I Need a Lawyer in California for This Case?
If you are having any issues regarding an employer charging you for broken or lost equipment while you were working, then it is recommended to immediately set up a consultation with an experienced California employment lawyer. LegalMatch can assist you in locating an attorney who handles cases involving employer deductions.
They will be able to help you understand your rights under both state and federal laws, as well as answer any questions you may have. They can also help you negotiate with your employer to resolve the issue without the necessity of a lawsuit. However, an attorney can also file a lawsuit on your behalf, and represent you in court, as needed.
