EmploymentQuestion 28 of 1632
A contractor wants to deduct the cost of a broken tool from an employee's paycheck. This is:
a.Illegal; employers cannot deduct for business losses from wages
b.Allowed if the employee signed a deduction authorization
c.Illegal unless the employee is found negligent in a court proceeding
d.Allowed for losses due to ordinary business risk
Explanation
California prohibits employers from deducting ordinary business losses (breakage, shortages, faulty work) from employee wages. Employers bear the risk of business operations.
Law Reference: Labor Code §221This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)