What Can Employers Deduct from Your Final Paycheck?
📅 Última actualización: Junio 2026·✅ Revisado por especialistas en derecho laboral·🔒 Sin registro · 100% gratuito
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Lawful deductions from your final paycheck
Your employer can only make certain deductions from your final paycheck. Anything outside these categories may be an illegal deduction — which you can challenge and recover.
Always lawful deductions
Federal and state income tax withholding
Social Security and Medicare (FICA)
Court-ordered wage garnishments (child support, student loans, back taxes)
Health, dental, vision insurance premiums (if you authorized)
401(k) or other retirement contributions (if you authorized)
Deductions that require written authorization
Loan repayments to the employer
Advances on salary already paid
Uniform purchases or required equipment
Generally unlawful deductions
Damaged company property (without signed authorization and state law permitting)
Cash register shortages or inventory shrinkage
Training costs (varies by state and agreement)
Unreturned company equipment (cannot be deducted from wages — sue separately)
Deductions that bring pay below minimum wage (for hourly workers)
Special rules: signing bonuses and relocation
Some employers include clawback clauses for signing bonuses or relocation assistance if you leave before a certain date. These can be enforceable if clearly written in your offer letter. Review your offer letter carefully before starting any job.
Frequently Asked Questions
Only if you authorized it in writing (in states that allow it) and the deduction doesn't bring your pay below minimum wage. In California, employers cannot deduct for losses due to employee negligence. In most states, the employer must sue separately to recover business losses.
No. Costs that primarily benefit the employer (background checks, drug tests, uniforms required for the job) generally cannot be deducted from wages. In California this is explicitly prohibited.
Recovering overpayments is complicated. Federal law generally allows deduction for overpayments, but it cannot reduce pay below minimum wage in a given week. Some states require employee consent and specific procedures. When in doubt, seek written agreement first.
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