Legal Question in Business Law in California
My boss has set up a new process where if we underquote a price of our product (windows) that he will no be taking the loss our of our paychecks. Is that legal????? We signed no contracts and this uas just unilaterally announced starting today.
3 Answers from Attorneys
It's illegal. Keep careful records (at home) and file a claim with the Labor Commissioner when the job ends.
Plans to penalize workers by taking the cost of the errors out of their pay are almost always illegal. The Labor Code makes it illegal to deduct anything from an employee's pay unless the deduction is (a) speficially required or authorized by law, or (b) authorized by the employee in writing.
It depends on how you are paid. If it is being taken out of a commission, it probably is legal provided it is not applied retroactively, and provided you still earn at least minimum wage. If it is taken out of wages that are earned regardless of revenues, then it definitely is not.
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