Labor Code §224 – Paycheck Deductions

California Labor Code section 224 says an employer may withhold part of your wages only when state or federal law requires or allows it, when you have expressly authorized the deduction in writing for things like insurance premiums, or when a bargaining agreement authorizes health, welfare or pension contributions. Anything outside those categories runs into the ban on taking back wages in Labor Code 221 and its companion sections.

Section 224 is written as an exception: it tells you which deductions sections 221, 222 and 223 do not forbid. That makes it the statute employers point to when they defend a deduction, and the one you check when a line on your pay stub looks wrong. For the ban itself, see our Labor Code §221 explainer; for job costs your employer has to cover instead of passing them to you, see our Labor Code §2802 explainer.

What Labor Code 224 says

Section 224 has two paragraphs. The first says sections 221, 222 and 223 “shall in no way make it unlawful” for an employer to withhold or divert part of an employee’s wages in three situations. The second closes a narrow loophole involving certain local taxes. The text was last amended in 1968.

Part	What it allows (paraphrased, with short quotes)
Category 1: required by law	Withholding when “the employer is required or empowered so to do by state or federal law.”
Category 2: your written authorization	A deduction “expressly authorized in writing by the employee to cover insurance premiums,” hospital or medical dues, or other deductions “not amounting to a rebate or deduction from the standard wage” set by bargaining, wage agreement or statute.
Category 3: bargaining agreement	“A deduction to cover health and welfare or pension plan contributions” that is expressly authorized by a collective bargaining or wage agreement.
Second paragraph	Nothing in the law lets an employer withhold wages to pay a tax, fee or charge that Government Code 50026 prohibits, even if the employee agrees.

Key fact

Who section 224 covers

Section 224 applies to any employer that relies on it to justify a deduction, and it protects employees however they are paid: hourly, salary, piece rate or commission. The Labor Commissioner says California’s labor laws protect workers regardless of immigration status. Labor Code 220, which removes some government employers from certain payday rules, does not list sections 221 through 224. Public employees often have other pay rules that also apply, so get advice on how they fit together.

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The three allowed categories, one by one

1. Deductions required or allowed by law

This covers deductions the law itself calls for: federal and state income tax withholding, payroll taxes and court-ordered wage garnishments. The Labor Commissioner confirms that a garnishment is a lawful deduction under section 224. It adds that, under Labor Code 2929(a), an employer can’t fire you because a garnishment of your wages has been threatened, or because your wages have been garnished to pay one judgment.

2. Deductions you authorized in writing

The statute requires an express, written authorization, and it limits what you can authorize. The examples it gives are insurance premiums and hospital or medical dues. The catch-all for “other deductions” only works if the deduction doesn’t amount to a rebate of your wages. The Labor Commissioner describes this category as insurance premiums, benefit plan contributions, or other deductions that are not a rebate on wages. In plain terms, you can agree in writing to pay for benefits you chose; you can’t be made to sign away part of your pay to cover the employer’s own costs.

3. Health, welfare and pension contributions under a bargaining agreement

If you work under a collective bargaining or wage agreement that expressly authorizes deductions for health and welfare or pension plan contributions, those deductions are allowed.

What section 224 does not allow

Other laws place certain costs on the employer, and a signed form doesn’t change that. The Labor Commissioner and the wage orders identify these:

• Cash shortages, breakage and lost equipment. Section 8 of the IWC wage orders bars any deduction or repayment unless the employer can show the loss came from “a dishonest or willful act” or the employee’s gross negligence. Ordinary mistakes are a cost of doing business.
• Required uniforms. When a uniform is required as a condition of employment, section 9(A) of the wage orders says it “shall be provided and maintained by the employer.”
• Tools and equipment. Section 9(B) puts required tools and equipment on the employer, except that an employee earning at least two times the minimum wage may be required to provide and maintain hand tools customarily required by the trade (this exception doesn’t apply to apprentices in state-registered apprenticeship programs). Measured against the state minimum wage, that is $33.80 an hour in 2026 ($16.90 × 2) and $34.80 an hour from January 1, 2027 ($17.40 × 2).
• Business expenses. Labor Code 2802 requires reimbursement of necessary expenses and losses from doing your job.
• Medical exams, bonds and photos. Labor Code 222.5 bars charging you for required pre-employment or legally mandated exams, and Labor Code 401 says the employer pays for any bond or photograph it requires.
• Tips. Labor Code 351 bars employers from taking any part of your tips, including card processing fees. See our §351 explainer.

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Loans, advances and being late

Two situations come up constantly:

• Employer loans and advances. Relying on a court decision, the Labor Commissioner says installment deductions for an employer loan are allowed if you authorized them in writing. But when you leave, the employer may take only one installment from your final paycheck, not the remaining balance, even if you signed something agreeing to a lump-sum deduction. The rest is a debt the employer has to collect some other way.
• Tardiness. Labor Code 2928 lets an employer deduct no more than “the proportionate wage which would have been earned during the time actually lost.” For lateness under 30 minutes, a half hour’s wage may be deducted.

Key fact

Penalties and remedies

Section 224 isn’t named in the penalty sections (225 and 225.5), because it works as an exception. If a deduction falls outside it, the violation is usually of section 221 (or 222 or 223), and these remedies follow:

• Recovery of the amounts deducted, through a Labor Commissioner wage claim or a lawsuit.
• Civil penalties under Labor Code 225.5 for withholding wages in violation of sections 221, 222 or 223: $100 for each failure to pay each employee for an initial violation, and $200 for each failure plus 25 percent of the amount withheld for a subsequent, willful or intentional violation, recovered by the Labor Commissioner.
• PAGA civil penalties: sections 221, 222, 222.5, 223 and 224 all appear in the list in Labor Code 2699.5. See our Labor Code §2699 explainer.
• Waiting time penalties under Labor Code 203 if you have left the job and the deducted wages are still unpaid, which the Labor Commissioner says may be available.
• Wage statement claims: Labor Code 226(a)(4) requires your pay stub to show “all deductions,” though deductions made on your written orders may be combined as one item. See our guide to California pay stub requirements.

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Deadlines

The Labor Commissioner lists three years to file a wage claim for illegal deductions. Each paycheck is its own violation, so the oldest deductions are the first to fall outside that window. If you are still employed and complain, Labor Code 98.6 protects you from retaliation; see our §98.6 explainer.

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Related sections

Section	How it connects
Labor Code 221	The core ban on taking back paid wages
Labor Code 222 and 223	Protect wages set by bargaining agreements and required wage scales
Labor Code 225.5	Civil penalties for unlawful withholding
Labor Code 2802	Employer pays necessary business expenses
Labor Code 2928	Limits on docking pay for lateness
Labor Code 2929	Protection from being fired over a single garnishment
Labor Code 226(a)(4)	Deductions must appear on your wage statement

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How it plays out

💡 Example: Jordan, a hypothetical office worker, borrows $1,200 from his employer and signs a written authorization for $100 to come out of each paycheck. Those installment deductions are allowed. After four paychecks he has repaid 4 × $100 = $400 and owes $1,200 − $400 = $800. He then quits. Under the Labor Commissioner’s guidance, the employer may take only one more $100 installment from his final paycheck, not the full $800, and that would be true even if his form had allowed a lump-sum deduction. The remaining $700 is a debt the employer has to pursue separately, and Jordan’s final pay is still due on time under Labor Code 201 or 202.

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What to do about a deduction you don’t recognize

1. Match every deduction on your pay stubs to a law, a benefit you chose in writing, or your union contract.
2. Ask in writing for a copy of any authorization you signed, and request your payroll records.
3. Keep notes on any deduction for shortages, damage, uniforms, tools or training, including who decided it and why.
4. If you are leaving with a loan or advance outstanding, check your final paycheck against the one-installment rule above. Our Labor Code §§201–202 explainer covers when final pay is due.

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Frequently asked questions

Does signing a policy that allows deductions make them legal?

Not by itself. Section 224 requires that the deduction be “expressly authorized in writing” and that it be a type the statute allows, such as insurance premiums, and not a rebate of your wages. A signed policy doesn’t change the wage order rules on shortages, uniforms and tools, or the employer’s duty under section 2802.

Can my employer deduct the cost of my uniform?

Not when the uniform is required as a condition of the job. The wage orders say required uniforms are provided and maintained by the employer.

Can my employer take my whole loan balance from my last paycheck?

The Labor Commissioner says no. Only one installment can come out of the final paycheck, even with a signed authorization.

Is a wage garnishment allowed under section 224?

Yes. A court-ordered garnishment is a deduction required or allowed by law. Your employer still can’t fire you because your wages were garnished for one judgment.

What does “not amounting to a rebate” mean?

It means a written authorization can’t be used to hand part of your agreed wage back to the employer. Deductions that buy something for you, like insurance, can qualify; deductions that simply reduce what the employer pays you don’t.

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Sources

• Labor Code 224 (California Legislative Information)
• Labor Code 221, 222, 222.5 and 223
• Labor Code 225.5 and Labor Code 2699.5
• Labor Code 2928, Labor Code 401 and Labor Code 226
• Government Code 50026
• Labor Commissioner: Deductions FAQ
• Labor Commissioner: How to file a wage claim
• IWC Wage Order 4, sections 8 and 9
• DIR news release 2026-66: 2027 minimum wage

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