Unreimbursed Business Expenses & Illegal Deductions

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Unreimbursed Business Expenses And Illegal Deductions

At the law office of Gigliotti & Gigliotti, LLP in Fullerton, California, our labor law attorneys provide over 25 years of legal experience to clients with a range of employment law issues. Within our main area of employment law emphasis — wage and hour disputes — fall the issues of unpaid reimbursements and illegal wage deductions. These matters directly affect employee pay and must be addressed when disputes arise. To learn more about an unpaid reimbursement or illegal wage deduction, please read below or complete our online contact form.

Unpaid Reimbursements

If you have business and employment-related expenses, your employer is required to reimburse you under California law. Section 2804 of the California Labor Code expressly prohibits any contract or agreement in which an employee waives the right to be reimbursed for employment expenses.

However, certain industry-specific situations may leave an employer the option to require that an employee furnish certain tools or equipment, where those items are “customarily required by the trade or craft.” By nature, these expenses are nonreimbursable.

If an employer requires that an employee wear a uniform, the employer must either distribute the uniform or pay for the cost of acquiring it. In many cases, employers must also reimburse for mileage and certain other travel expenses. If you have questions regarding reimbursement for an employment-related expense, contact an attorney at Gigliotti & Gigliotti, LLP today.

Illegal Wage Deductions

California law states that no employer is allowed to withhold any part of the agreed wage rate from the employee’s wages, unless:

  • Local, state or federal laws require that the employer do so
  • An employee has authorized, in writing, the deduction of money to provide for medical insurance, retirement savings or other recognized deductions
  • The deduction does not amount to a rebate or deduction from the standard wage arrived at by collective bargaining or wage agreement or statute
  • The deduction is for union dues, where such deductions are authorized by joint wage agreements or collective bargaining contracts negotiated between employers and employees or their representatives

It is against the law for employers to withhold earnings due to:

  • Fines
  • Cash shortages in a common cash box or register used by two or more workers
  • Breakage or damage
  • Losses due to an employee accepting a dishonored check, if the employee is given discretion to accept or reject any check
  • Losses by the employer, if the losses cannot be attributed to the employee’s willful or intentional disregard of the employer’s interest

You do not have to put up with an unpaid reimbursement or illegal wage deduction. Our lawyers at Gigliotti & Gigliotti, LLP can help you get the money you are owed by your employer. Call 949-305-8202 today to schedule your free initial consultation at our Orange County office.


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