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When Can I Withhold Money from a Former Employee?
QUESTION:
I run an antique store in Northern California. I am about to fire a worker who is just too clumsy to be in this line of work -- she has broken several very expensive items, including a valuable piece of pottery, in the last month or so. Can I deduct the cost of the things she broke from her final paycheck?
ANSWER:
Well, it was probably a good idea to get the bull out of your china shop, but you won't be able to charge her for the damage she caused.
In California, employers can withhold money from a worker's wages only if the employer suffered loss or damage caused by the employee's dishonesty, willful misconduct or gross negligence. If your clumsy worker had broken these items on purpose or while being extremely careless -- while attempting to juggle them or use them as a doorstop, for example -- then you might have a strong enough case. However, it sounds like you're dealing with butterfingers rather than sabotage, which means that your employee doesn't have to pay for the things she broke.
And don't delay on that final paycheck -- California requires you to pay a fired worker immediately upon termination.
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