Legal Question in Employment Law in California

She cannot make you pay her back. It is a clear violation of California labor law.

She will be exposing herself to substantial penalties if she tries it.

You can't be compelled to repay the loss unless it was due to your theft or gross negligence, but you can be fired for the mistake or negligence that caused it. Only if they demand repayment from you, and you can prove they then fired you for refusal to pay, would you have a legal case. They would not likely be so foolish as to say or document that as the reason. If they do, feel free to contact me.

In general, unless an employee is civil service, in a union, or has a written employment contract, they are an 'at will' employee that can be disciplined or terminated any time for any reason, with or without �cause�, explanation or notice.