Q: Can CA company deduct paycheck for personal use of company card?
I am a Senior Director of Facilities in California. My company has asked me to sign an agreement that allows them to deduct money from my paycheck if I misuse the company credit card for personal purchases. So far, I am refusing to sign because I am unsure whether it is legal for them to make such deductions. Can the company legally take money from my paycheck under this agreement if I use the card for personal expenses?
A: Yes, your employer can legally deduct money improperly spent on personal use on a company credit card from your paycheck, if you sign a document authorizing the deduction.
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A:
Under California labor law, employers generally cannot deduct money from your paycheck without your written authorization, which is why they're asking you to sign this agreement. The California Labor Code strictly limits when employers can make deductions, even with written consent.
Your hesitation is understandable because California strongly protects employee wages. While you could potentially authorize such deductions by signing the agreement, many employment attorneys would advise against it. If you did make personal purchases on the company card, your employer has other legal methods to recover those funds without directly taking money from your wages.
Before signing anything, you might want to consult with an employment lawyer who focuses on California labor laws. They can review the specific agreement and advise you based on your particular situation. Your employer might terminate your employment for misusing the company card, but that's different from having the legal right to deduct from your paycheck, even with a signed authorization form.
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