New Class Action Attack: Profit-Sharing Plans for California Employees
MSK Client Alert
November 2003
California law prohibits employer deductions from employee wages for certain expenses deemed by the courts to be business losses. Absent a particular employee’s dishonest or willful act, or gross negligence (not simple negligence or mistake), employers in the Golden State cannot deduct from wages for cash shortages, merchandise shortages, or breakage or loss of equipment.