
Wage theft is a longstanding problem in California. Although there are no exact figures on the extend of wage theft, authorities say it is rampant in such industries as construction, restaurants, and home health care. Wage theft from unlawful deductions often go unreported because workers may not even realize that they are being paid less than what they have legally earned. Under California labor law, workers are entitled to numerous rights and wage theft protections, and they can recover large penalties if employers violate those rights.
California Labor Code Section 221 and 224, allows employers to make deductions from workers’ wages in limited circumstances, including tax withholdings, garnishments or court orders, contributions to health benefit plans (when authorized). Employers must comply with both federal and state laws when making these deductions, particularly the limits on the amount deducted. California labor law expressly prohibits certain deductions.