EmploymentQuestion 933 of 1632

An employer discovers it overpaid an employee and, without consent, deducts the full overpayment from the next paycheck, dropping the pay below what was earned. Is this lawful?

a.Yes; the overpaid amount was never actually earned
b.No; §221 bars taking back wages already paid
c.Yes, provided the deduction is shown on the pay stub
d.Yes; employers may always correct their own payroll errors

Explanation

Labor Code §221 makes it unlawful for an employer to collect or receive back any part of wages already paid, and §224 permits deductions only where they are authorized by law or by the employee's written authorization and do not reduce the wage below the statutory minimum. So even a genuine overpayment must be recovered by written consent or by suit, not by self-help. (a) is the 'it wasn't earned' framing, which fails because the money became wages when it was paid. (c) confuses disclosure with authorization - itemizing an unlawful deduction on the stub satisfies §226 and still violates §221. (d) is the belief that a payroll error entitles the employer to unilateral correction; no such exception exists.

Law Reference: Labor Code §§221, 224; DLSE Manual §11.2

This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report