Wage Theft, Gig Work, and the Fine Print: What’s Really Hitting Your Payroll?

[00:00:00] If the squeaky wheel gets the oil, if the employee does not say something, then nothing happens and that's what they're saying.

[00:00:06] Welcome to our podcast, It's About Payroll. We're your hosts, Brian Escobar and Walter William Duncan III.

[00:00:14] Whether you're new to the payroll game or a seasoned veteran, we have something for you.

[00:00:21] Welcome back folks. This is episode 130 and 141 of It's About Your Paycheck.

[00:00:32] We're still in the place where we're doing two at one. It may and will break up before we get into the rest of the show.

[00:00:39] What's up, Walt? How are you doing today, sir?

[00:00:41] Man, I'm good. Got my blue from Lingo shirt on, so I'm in a tropical state of mind. How about you, man?

[00:00:51] Oh, I love it. Yeah, I love it. I always love the shirt when you wear the shirt. I'll be like, oh, no doubt. He's feeling it today. He's chilling.

[00:00:59] I'm good, man. I'm good. Thank God. Like I just said, hey, we gotta be efficient. The Yankees are playing. The Giants are playing.

[00:01:05] I'm freaking out New York sports wise, but it's fun. The New York Liberty won the WNBA.

[00:01:12] I haven't gotten. Did they? Yeah. Oh, amazing. The first. Yeah. See? Amazing. I'm loving sports right now. I haven't gotten into the WNBA yet.

[00:01:21] That's good. Caitlin Clark definitely. I was already aware of it, so she didn't put WA on the map for me, but I'm like, it definitely. Oh, wow. They still are doing a thing. Don't doubt.

[00:01:32] Definitely good players, man. Yeah. And so now I definitely want to watch more and she's blowing it up right now currently with the deal that she's going overseas.

[00:01:40] And I'm not mad at her, man. I saw one of the posts about what she's going through in the league and I was like, go get your money, girl.

[00:01:47] What do you think about that? You're a basketball. I think you're more of a basketball fan than I.

[00:01:51] What do you think about the whole Caitlin Clark situation? I think she's a great player.

[00:01:55] I think a lot of players felt some kind of way because she was coming in and like they were, they were announcing her like the next great one in the game and stuff like that.

[00:02:05] And she was like bringing like lots of ratings, lots of viewership and stuff like that. And so I think it was good for the game.

[00:02:12] It brought more money. More money. I think the WNBA could bring in even more money for their counterparts.

[00:02:17] Yep. They're like they're grossly underpaid and they've been playing some good games, man. Like that finals. So the WNBA was great.

[00:02:28] We got to do sports pay. Yeah. Sports pay. And because this is another great example of not a great example, unfortunately, but another example of how women are underpaid.

[00:02:39] Mm hmm. You know what I mean? Yeah, I get popularity, but come on, we could we could definitely I'm glad it's still going and it's still growing. So that's cool. Yeah.

[00:02:48] Yeah, man. Angel Reese, her and all those different players. Yeah. No, I hate you. See, that's cool.

[00:02:54] Yeah, man. All right, bro. You want to start us off? We got pay news coming up.

[00:02:59] Yeah, I do. I have a quick article from Cal matters dot org, and it talks about when employers steal wages from workers.

[00:03:09] So it's an article from 2022. And it just gave some stats and stuff like that about how employers may deny over overtime premiums and ask employees to work off the clock and or take their tips.

[00:03:24] And there's a stat on here that said back in 2015 that in California workers nearly lost nearly two billion dollars from not being paid minimum wage.

[00:03:34] This is 2015. You know, saying the whole state or the whole state.

[00:03:39] OK, that I get the most thing. California. Yep.

[00:03:43] In California, because California has the most W2 employees. So that makes sense.

[00:03:48] Yeah. Wow. I said that most of the victims of the wage theft were often women, immigrants and people of color.

[00:03:56] You see what I'm saying? We just saw many, many, many in restaurants, construction, hotels, car washes, blue collar, garment businesses, farms, warehouses and nail salons.

[00:04:08] Yep. Frontline labor like for frontline workers. Yep. Blue collar.

[00:04:13] And one there was a one letter on here that I found interesting and it teed me off a little bit.

[00:04:18] I said that usually no one goes to jail for the death.

[00:04:24] For stealing from the wages. Right. Yeah.

[00:04:28] Yeah. Who we would who was I just saying is to I was telling somebody recently, we build these things because they're like insurance. Right.

[00:04:36] Some of the things are if nobody ever if if the squeaky wheel gets the oil, if the employee does not say something, then nothing happens.

[00:04:45] And that's what they're saying. And look, for me, if the shoe was on the other foot and the employee was the one that was stealing from the employer.

[00:04:55] Oh, you want immediately charge them. Yeah.

[00:04:59] You're going to jail. Fired.

[00:05:00] So I just find that interesting dynamic that the employer can steal from the employee.

[00:05:09] But it's it. Oh, my gosh. And it should get us angry.

[00:05:13] It should get everybody out there that gets a check angry, even if thank God if your company doesn't do it to you.

[00:05:18] But think about employee right. We it. I'm not so much.

[00:05:21] Oh, it has to be a union situation.

[00:05:23] Mm hmm.

[00:05:24] Everybody that is an employee, a W and two employee has something in common as far as employee rights and that these things should be like, hey, let's all make sure that we because.

[00:05:35] Oh, my gosh. Imagine if all employees were speaking up about things like this.

[00:05:40] Mm hmm.

[00:05:42] See, and that's why California is aggressive. It justifies their aggressiveness.

[00:05:46] Their employee is how would we say employee friendly centric?

[00:05:49] Yeah.

[00:05:50] Yeah.

[00:05:51] Yeah.

[00:05:51] And then before I pass you the baton, I just want to read off some of the things that they consider wage theft.

[00:05:58] Right.

[00:05:59] So you pay less than minimum wage.

[00:06:03] Yep.

[00:06:03] You pay less than what was agreed to, including commissions, peace rates and all regular wages.

[00:06:09] Yep.

[00:06:09] They take your tips.

[00:06:11] They don't pay you overtime.

[00:06:13] They don't pay you for split shifts.

[00:06:15] They don't pay any promise, vacations or bonuses.

[00:06:19] They don't pay final wages in a timely manner.

[00:06:22] Ooh, that's a state regulation.

[00:06:25] You already know.

[00:06:25] The nine mill breaks, rest breaks, prevent you from having those cool down breaks for those that are eligible for those.

[00:06:32] They don't allow you to accrue or use sick leave.

[00:06:35] They take unauthorized deductions from your check that they bounce paychecks.

[00:06:42] Wow.

[00:06:44] And they don't reimburse for work expenses.

[00:06:50] I feel like we got to do a whole nother episode on wage theft because I have so many things to say about those things.

[00:06:58] Right.

[00:06:58] Wow, bro.

[00:06:59] For wait, hold on.

[00:07:00] I'm going to write it down.

[00:07:01] We're going to do wage theft.

[00:07:02] Okay.

[00:07:03] Wage theft.

[00:07:04] Thank you for sharing all that stuff.

[00:07:05] These are all the things that you have to be.

[00:07:08] This is why we do the show.

[00:07:10] This is everything Walt just ran through.

[00:07:11] Is this why we want not only the employees to know, of course, but also the payroll people.

[00:07:16] So you can understand the flip side of people are getting robbed.

[00:07:20] Wow, man.

[00:07:21] Thank you, bro.

[00:07:22] Yes, sir.

[00:07:24] All right.

[00:07:26] Mine is a, and we're ready to move, right?

[00:07:29] That was good.

[00:07:30] Okay, cool.

[00:07:31] Mine is again, we always in the same vein.

[00:07:33] This one, this time I was intentional.

[00:07:35] I was like, all right, what are we doing?

[00:07:36] Let me look.

[00:07:37] Right.

[00:07:38] And I found, and I did deductions.

[00:07:39] But what I found was overpayments and the relationship to deductions, because that is often the situation.

[00:07:48] And a group of workers in Houston started experiencing these deductions that were like hefty, like up to $300 each in a paycheck.

[00:07:57] And they were like, whoa, where's this coming from?

[00:07:59] And they had come to find out that they had, they were overpaid.

[00:08:06] And these deductions were started without.

[00:08:09] Without, it seems like in the article without acknowledgement, without the thing.

[00:08:14] And they started taking the money out of their check.

[00:08:15] And it was like, whoa, wait.

[00:08:17] Now I believe it because Texas doesn't.

[00:08:19] We don't pay income tax in Texas.

[00:08:22] So they don't have a governing body that makes it employee centric.

[00:08:26] They're not protecting, not they're not protecting, but they don't have that extra layer of advocacy for the employees.

[00:08:34] So I could see this happening where company was just no communication.

[00:08:40] They overpaid.

[00:08:41] They realized the overpay and they were like, oh, I'm taking it back.

[00:08:44] But other states, this is what we're calling out, folks, with these deduction type things, state by state, as we go along.

[00:08:51] Other states regulate that and say, hey, you can take it back, but you need to give them communication, notification.

[00:09:00] Other states, you say you can take it back, but you need their written consent and approval before you take it back.

[00:09:07] In some states, there's even like a timeline or a time range that you have.

[00:09:14] Oh, my God.

[00:09:15] You want us to take those deductions, right?

[00:09:16] Yes.

[00:09:17] So and we talked about on talked about this on that on this show, the timeline.

[00:09:23] I remember you covering that, bro.

[00:09:25] That was amazing.

[00:09:26] So all these different factors play in.

[00:09:28] Right.

[00:09:28] And that's the that's those are the things.

[00:09:31] Those are the gems.

[00:09:32] That's the free game that we want to share.

[00:09:34] So we want you to make.

[00:09:35] And guess what?

[00:09:36] It's already there.

[00:09:37] Right.

[00:09:38] We're just trying to make it apparent.

[00:09:39] It's already on your state websites.

[00:09:41] We're getting the information from good resources.

[00:09:44] We do this for a living.

[00:09:45] We have to be sure about our resources.

[00:09:48] So please believe like these things are the these little gems that we want people to know.

[00:09:53] Deductions are a state by state thing.

[00:09:55] Some states are more protective than others.

[00:09:58] No, no way you stand.

[00:10:00] I'm not saying don't live there.

[00:10:01] It is what it is.

[00:10:02] Home is home.

[00:10:02] But no way you stand.

[00:10:04] Know how it is.

[00:10:06] So, yeah.

[00:10:06] Yeah.

[00:10:07] That was my stuff.

[00:10:08] Right.

[00:10:10] We killed it.

[00:10:11] We killing it.

[00:10:12] All right.

[00:10:12] Let's pay the bills, man.

[00:10:13] Let's pay some bills.

[00:10:16] All right.

[00:10:16] Shout out to time track go.

[00:10:19] They keep doing that thing.

[00:10:20] It's a great system.

[00:10:21] It's a free freestyle a little bit.

[00:10:23] They have a great system.

[00:10:24] All right.

[00:10:24] Check them out.

[00:10:25] They have introduced an innovative new feature designed to simplify time tracking for both exempt and non exempt, meaning hourly and salaried employees.

[00:10:35] Okay.

[00:10:36] This feature aligns with the recent changes in the FLS say regarding the new salaried employee rules.

[00:10:44] Yeah.

[00:10:45] So by automatically calculating those standard 40 hour work weeks and accurately key point accurately determining overtime when necessary time track go ensures precise employee time while also maintaining those accurate PTO balances, which we all know is important.

[00:11:02] We're going to make sure your PTO is accurate and correct.

[00:11:05] My money's right.

[00:11:06] Yep.

[00:11:07] Additionally, the system can identify those instances where non exempt employees may have reached may not have reached correction the 40 hour threshold.

[00:11:16] So to learn more, please contact contract go at 888 321 9922 or you can go visit www.tontrackgo.com.

[00:11:30] That's T I M E T R A K go.com.

[00:11:35] Let's go.

[00:11:37] Let's go.

[00:11:38] We got to tell them to make a dance because the T I M E they can make a dance to it.

[00:11:42] They could do, you know what I'm saying?

[00:11:44] Yeah.

[00:11:44] They got a little creepy clock icon like, Oh my, Oh, from a low key.

[00:11:49] Oh, from low key.

[00:11:50] Oh yes.

[00:11:51] And then incorporate the wooden clock thing.

[00:11:53] Yeah.

[00:11:54] Check out the episode with time track go.

[00:11:56] We literally talk about a wooden time clock folks.

[00:12:00] Okay.

[00:12:01] It's amazing.

[00:12:02] I like, I love it, man.

[00:12:03] I love it.

[00:12:03] All right.

[00:12:04] Let's get into it.

[00:12:05] Cause I had not said today we are talking about deductions in Cali.

[00:12:10] We did talk about deductions, but we didn't specify.

[00:12:12] We're talking about deductions in Cali and what's good to know.

[00:12:16] So what's going to start us off and I'll finish it up.

[00:12:20] How are we doing on time?

[00:12:21] All right.

[00:12:21] We doing good.

[00:12:22] Yeah.

[00:12:23] So I just have a couple of key things to talk about for employees and employers.

[00:12:27] You can jump in there anytime and add any thoughts that you want, Brian.

[00:12:30] Um, so for the employers or the payroll or HR professionals, you want to make sure that

[00:12:36] you're withholding any mandatory, uh, deductions that might be like income tax, state income tax,

[00:12:44] social security, Medicare, FICA, that stuff, state disability insurance, SDI, any local jurisdiction requirements.

[00:12:52] You want to make sure you're adhering to those any voluntary deductions that the employee may have authorized and elected.

[00:12:59] You want to make sure that you're processing those accordingly wage garnishment, everything.

[00:13:05] And we want to make sure that you're compliant.

[00:13:07] You want to make sure that you are providing itemized wage statements.

[00:13:12] And you also want to make sure that as a, an employer or a payroll professional or HR professional, that you're not deducting, um, for business losses or breakage.

[00:13:22] Right.

[00:13:22] You can't not do that.

[00:13:23] You can't deduct from a, uh, uh,

[00:13:25] They try to take that from people's checks.

[00:13:27] Yeah.

[00:13:28] Some people might.

[00:13:29] Yep.

[00:13:30] Yep.

[00:13:31] And it's illegal.

[00:13:32] They don't, they can't do that.

[00:13:33] Yeah.

[00:13:33] That's what it says in California.

[00:13:35] Ooh, that's all.

[00:13:37] See what I'm saying.

[00:13:38] Thanks bro.

[00:13:39] Good game.

[00:13:40] Yeah.

[00:13:40] Employees.

[00:13:41] Keep that in mind.

[00:13:42] Yeah.

[00:13:43] So written authorization is required for most voluntary deductions.

[00:13:47] So you want to know that as the employer and the employee, and as the employer or professional, you want to maintain accurate records for at least four years.

[00:13:57] So if there's an audit and somebody says, Hey, I want to see the authorization or the written authorization from this employee years ago, you better have it in your records.

[00:14:05] Oof.

[00:14:06] As we said, comply or fry.

[00:14:08] Ooh, comply or fry.

[00:14:09] Yep.

[00:14:11] So time restrictions on final paycheck deductions and final pays.

[00:14:15] You want to make sure you're adhering to those as well.

[00:14:18] So for the employee, you want to make sure that you know your rights, which are protected against, but you're protected against illegal deductions.

[00:14:25] So the employers cannot deduct for their cash shortages, like we mentioned, unless proven deliberate.

[00:14:32] So if the employee is responsible for a cash shortage, then they're saying, hey, you were doing your register and like 10 bucks are gone from what we should have taken in.

[00:14:42] And then they're saying like, if it was deliberate by the employee, then they can deduct it.

[00:14:49] So I guess if the employee is sold.

[00:14:50] They got to prove that though.

[00:14:51] Yeah.

[00:14:52] Okay.

[00:14:53] So I said, yeah, proven, I said proven deliberate.

[00:14:56] Cause you can't be like your till is short.

[00:14:57] Give me $10.

[00:14:58] What?

[00:14:59] What?

[00:14:59] Oh, so you can't, you cannot be deducted for a broken or lost equipment.

[00:15:06] Um, there are some exceptions with this, but uniform costs.

[00:15:10] You want to do your research on that.

[00:15:11] There are some uniform costs, all this stuff.

[00:15:13] Please.

[00:15:14] Um, business losses.

[00:15:15] As I said earlier that you want to know that some required documentation is needed.

[00:15:21] You want to make sure that you receive the itemized pay statement of what's going on.

[00:15:25] You don't want to just get a pay statement that doesn't have anything says, Hey, this is just your net pay.

[00:15:29] You worked 80 hours and this is your gross pay.

[00:15:32] And this is your net pay.

[00:15:33] They're saying like, where are the taxes?

[00:15:35] Where are the deductions?

[00:15:36] What am I paying into?

[00:15:38] You know what I'm saying?

[00:15:38] I want to make sure that you inspect your, your own payroll records.

[00:15:42] You want to make sure that you have written notice for any change in your deductions, your pair, your payroll pro or your HR pro can not just go and change your record without your consent.

[00:15:52] But you want to make sure that what's up in Cali, you can't say, what is it says written notice is required for changes in deductions for changes and the duck.

[00:16:04] Oh, okay.

[00:16:05] That's fair.

[00:16:05] Yeah.

[00:16:06] Okay.

[00:16:07] So now we got scared.

[00:16:08] I'm like, wait a minute.

[00:16:08] I got to make updates.

[00:16:09] I got to make updates here and there.

[00:16:12] Can't get written for everything.

[00:16:14] So you want to make sure that you're understanding what's mandatory, right?

[00:16:18] So it's good for you as an employee to educate yourself on what's mandatory.

[00:16:21] That's again, like I mentioned those taxes, the local taxes that you're responsible for social security and Medicare.

[00:16:29] If you're required that because you may be on a visa or some type of student that may not, that may be exempt from paying FICA.

[00:16:37] So you want to know about that as well.

[00:16:40] Um, you want to know about pre-tax and post-tax deductions and you want to know what you can do, who you can contact.

[00:16:47] Right?

[00:16:47] So if you file a complaint, you're going to, yeah, you should contact your labor, your local labor commissioner's office.

[00:16:54] And, um, but, and also know in the state of California, there is a three year statute of limitations on filing the complaint.

[00:17:02] So do it in real time.

[00:17:04] Don't wait for years.

[00:17:05] Oh man.

[00:17:06] Like 10 years later.

[00:17:10] You know what?

[00:17:11] I'm going to sue these guys.

[00:17:14] Look, and look, that's why it's important as the employee to, if you're listening to this, to educate yourself and know what's going on.

[00:17:20] And then lastly, you want to know that you're protected against retaliation.

[00:17:24] If you do file a complaint.

[00:17:27] Yeah, for sure.

[00:17:29] Yeah.

[00:17:29] That's a tough one right there.

[00:17:31] Yep.

[00:17:32] That's it.

[00:17:33] That's all I got.

[00:17:33] I feel like when, and thank you for that.

[00:17:37] That was awesome.

[00:17:38] Like I had five other show ideas just off of the things that you were saying.

[00:17:44] All right.

[00:17:45] That's cool.

[00:17:45] That's awesome, bro.

[00:17:46] So your wheels are spinning.

[00:17:48] I want to talk about this.

[00:17:50] I want to talk about that.

[00:17:50] Yes.

[00:17:51] But I'm writing it down.

[00:17:52] So we're good.

[00:17:53] We're good folks.

[00:17:54] Yeah.

[00:17:54] I'm not paying attention.

[00:17:55] Oh, that little idea that I just had.

[00:17:57] I was like, oh, how cool would it be if like I could type and overlay on our stuff in real time?

[00:18:03] Yeah, that'd be cool.

[00:18:04] Cause I can show the show folks that watch on YouTube, the thoughts that it's spurring payroll wise and paycheck wise for employees.

[00:18:12] Right.

[00:18:12] That would be dope.

[00:18:13] Anywho, it'll come.

[00:18:14] It'll come.

[00:18:15] We're almost there.

[00:18:17] Mine is a lot.

[00:18:20] Some of the same stuff reframe though, toward the employee.

[00:18:23] This is, I'm talking to the employees now, and I want to tell you about what's allowed.

[00:18:28] Right.

[00:18:28] Let's just make it really easy.

[00:18:30] Sum it up.

[00:18:30] What is allowed in the deductions and what's prohibited in the deductions in the state of California.

[00:19:05] Okay.

[00:19:06] It's a lot of the curiosity things.

[00:19:08] It's the, that's how you need to be not only as an employee, but as a, as a, or how can I say someone about their paycheck?

[00:19:15] Be curious about everything on there.

[00:19:17] It's your money.

[00:19:19] So anywho, employers can make, can only make the specific types of deductions from employee wages, such as legal deductions.

[00:19:27] So anything required by state or federal law, taxes, state taxes.

[00:19:31] If you live in that state, that type of thing.

[00:19:34] Okay.

[00:19:35] Employee approved deductions.

[00:19:38] If you signed off and writing on these deductions, it can be taken from your pay.

[00:19:45] Cause you are proving it.

[00:19:47] Like it could be careful what you're signing to.

[00:19:49] Cause you can be signing off on stupid ish.

[00:19:52] And you're like, wait, what?

[00:19:53] Whoa.

[00:19:53] You see it come out of your checking.

[00:19:54] You're like, whoa, wait a minute.

[00:19:56] So be careful.

[00:19:58] Especially as you're getting a job, read the, my gosh, read the handbook.

[00:20:03] Employee approved deductions.

[00:20:04] If you wish to sign off from writing.

[00:20:06] Okay.

[00:20:06] And then also these things can include insurance premiums and hospital dues.

[00:20:11] What I want to say about insurance premiums, benefits and things.

[00:20:14] This is why folks, and I just connected the dot.

[00:20:18] This is why we do open enrollment for companies.

[00:20:21] You're signing to this.

[00:20:24] You are signing to, I want to take benefits out of my thing.

[00:20:28] I want to take this stuff out of my check.

[00:20:30] Okay.

[00:20:31] So it's, and there's a lot of regulations around that.

[00:20:34] We could do a whole nother show on that type of thing in deductions and benefits.

[00:20:38] And maybe we should probably like in January when open enrollment is done.

[00:20:43] And when people start feeling their check, like, wait a minute.

[00:20:46] I did.

[00:20:46] Oh my gosh.

[00:20:47] I picked medical dental vision.

[00:20:48] I picked everything.

[00:20:49] I was happy that day.

[00:20:50] And I was so ambitious.

[00:20:52] Like, and now it hits your check and you're like, Oh, I want it all.

[00:20:54] Anywho.

[00:20:55] Yep.

[00:20:55] You're signing to it.

[00:20:57] Okay.

[00:20:58] Union agreements.

[00:20:59] If you're in a union, their dues, that was one of the articles that I came across and

[00:21:03] prepping for the show was a, you, I pick, it was like, Oh wait, do I want this union one?

[00:21:07] Or do I want this Houston one?

[00:21:08] I want the Houston one better, but it was a union thing.

[00:21:11] And they were fighting about the dues.

[00:21:12] And then was it good or not?

[00:21:14] Was it legit or not?

[00:21:15] But when you get into a union, you're signing to this.

[00:21:18] So these are the things that you have to, Hey, wait, union dues.

[00:21:22] Is it coming out of my check or is it covered a hundred?

[00:21:24] You know what I mean?

[00:21:25] You want to understand because that impacts your money.

[00:21:29] Tardiness.

[00:21:30] If you're late by less than 30 minutes, employers conduct can deduct up to a half hour of wages.

[00:21:37] Whoa.

[00:21:37] For longer days, they can deduct based on the exact time loss.

[00:21:40] So I inherently knew this, but I didn't, it, they calling it out separate and it makes

[00:21:44] it more.

[00:21:45] Yeah, that's true.

[00:21:47] Yeah.

[00:21:47] So think about that.

[00:21:48] It's if you're late by less than 30 minutes, employers can deduct up to the full 30 minutes.

[00:21:55] You're late 20, but I'm deducting 30.

[00:21:57] Now I would warn, warn against, check that in your state.

[00:22:02] I'm sure that is a state by state variance.

[00:22:05] So look in, look that up.

[00:22:08] Unreturned uniforms and equipment.

[00:22:09] If you don't return company prop property and company provided items and you agree to

[00:22:16] it in writing.

[00:22:17] When you signed on in the beginning, when you got the job, employers can deduct the cost

[00:22:22] of those things from your pay.

[00:22:25] Right?

[00:22:25] It all comes back to that employee handbook.

[00:22:27] We gotta, we gotta re keep reiterating how important it is to understand what you're signing

[00:22:31] when you're getting the job.

[00:22:32] All these things can impact your pay.

[00:22:35] So these are allowed deductions, right?

[00:22:40] Okay.

[00:22:40] Here's the ones that you're protected against in California.

[00:22:42] Hey, this is prohibited.

[00:22:44] Job related exams.

[00:22:46] Course for pre and employment, pre employment, physicals or medical exams cannot be deducted.

[00:22:52] Credit card tip fees, the deduction to process the credit card that cannot be deducted.

[00:22:58] That's awesome to know.

[00:22:59] Cause I'm sure they get petty wop out there with that.

[00:23:02] Cash or equipment losses.

[00:23:04] Like you were talking about the spillage, right?

[00:23:06] Deductions for lost cash or broken equipment are prohibited unless it's proven you acted in

[00:23:12] dishonesty or with severe carelessness.

[00:23:14] Okay.

[00:23:15] Fair.

[00:23:16] Well, right.

[00:23:17] Yeah.

[00:23:19] Commission overpayments.

[00:23:20] If you receive excess commission in advance, employers can't deduct unless you agree to repay

[00:23:27] it.

[00:23:27] Look at that.

[00:23:28] So I want to go back to what, to line number three about the last sentence in there.

[00:23:35] It says, unless it's proven you acted dishonestly or with severe carelessness.

[00:23:42] What is severe carelessness and what is dishonest?

[00:23:46] So what I thought about right away was like, they had you on camera grabbing a meat slicer

[00:23:52] and being like, boom, boom.

[00:23:54] Maybe even they got you on audio.

[00:23:56] F this job.

[00:23:57] You know what I mean?

[00:23:58] That is severe carelessness and dishonesty.

[00:24:01] So, so what if you have a meat slicer and you're picking it up to clean and you look

[00:24:05] away and you're laughing at what your coworkers and then you drop it or something.

[00:24:09] Again, I'm hoping things are on camera, right?

[00:24:12] Okay.

[00:24:13] And that'll be hard to, if we're assuming it's on camera, I would hope that the employer,

[00:24:18] maybe there's an in between, maybe it's, Hey, you were a little careless.

[00:24:22] Look, if they're allowed, but this is prohibited.

[00:24:25] They can't take it without your approval of your agreement anyway, in California.

[00:24:29] Yeah.

[00:24:30] So these are the, it's a great, but that's a great call out because those are the things

[00:24:34] you want to understand state by state.

[00:24:36] What I thought you were going to say was on, on the next item for how it calls out only commission

[00:24:42] overpay.

[00:24:43] So that's interesting.

[00:24:44] What do you mean?

[00:24:44] Wait, regular overpayments.

[00:24:46] What then again, these are the little things that you got to be aware of in the states

[00:24:50] you live in.

[00:24:51] And then the last one is prohibited.

[00:24:53] Again, these are prohibited.

[00:24:55] Relocation costs.

[00:24:56] Employers can't deduct costs for moving you to the U S.

[00:25:00] So if they choose and they offer you that, Hey, it's covered.

[00:25:04] They can't now turn around and deduct it from you.

[00:25:07] See how I did you that favor.

[00:25:09] Right.

[00:25:11] Now it's time for some get back.

[00:25:15] You so stupid, bro.

[00:25:18] But see exactly right.

[00:25:19] This is a great reason to know what state what's going on in your state.

[00:25:23] You know what I mean?

[00:25:24] How did these things apply?

[00:25:25] And man, folks, we just hope there's so many times I was just talking to a neighbor and

[00:25:30] he was like squeaky wheel gets the oil.

[00:25:32] And I was like, yes, absolutely right.

[00:25:34] The squeaky wheel gets the oil.

[00:25:35] And I think I had to explain that to somebody recently.

[00:25:37] What does that mean?

[00:25:38] And I'm like, squeaky wheel gets the oil.

[00:25:41] Right.

[00:25:42] We already know.

[00:25:44] Yeah.

[00:25:44] You know, you speak up enough.

[00:25:46] You're going to get something addressed.

[00:25:48] So, yeah, you know, and the wall says all the time, we might be the one person that had

[00:25:54] the courage to set off that snowball effect and that tidal wave effect where you change

[00:26:00] the whole thing.

[00:26:01] Like you just literally change the whole game for everybody else.

[00:26:04] Yeah.

[00:26:05] Because you one person was courageous enough to be like, hey, this is wrong in my check,

[00:26:09] folks.

[00:26:09] You know what I mean?

[00:26:11] Right.

[00:26:11] Right.

[00:26:11] Hey, we gave you that little nugget to be like, what?

[00:26:15] That just happened to me.

[00:26:16] Let me go look up what they're talking about.

[00:26:18] Oh, and you find out.

[00:26:20] Oh, snap.

[00:26:20] This is not right.

[00:26:21] Yeah.

[00:26:23] This is you guys are doing me wrong.

[00:26:24] Where's my money?

[00:26:25] And then at the very least, I should explain it because there are exceptions to everything.

[00:26:30] Yep.

[00:26:31] Sorry, my dog.

[00:26:33] Yeah.

[00:26:33] Let him bark.

[00:26:34] Yeah.

[00:26:35] There are exceptions to everything.

[00:26:37] So keep that in mind.

[00:26:38] And there are penalties if folks really quick before we get out of here, there are penalties

[00:26:43] in California violating certain rules like deducting the cost of pre-employment exams is a misdemeanor

[00:26:49] offense in California.

[00:26:51] This guy can help employees in California stay informed about what can and can't be deducted

[00:26:59] from their paycheck.

[00:27:00] This is what we're trying to do.

[00:27:02] We're trying to guide folks.

[00:27:03] So hopefully you get a little gym.

[00:27:05] Let's see.

[00:27:06] Oh, so in California, I promise to define it real quick.

[00:27:09] In California, private employers, because this all applies only to private employers,

[00:27:14] refer to businesses or organizations that are privately owned as opposed to public employers,

[00:27:21] which are government entities or agencies.

[00:27:24] So private employers include companies, corporations, partnerships, non-for-profits and other privately

[00:27:32] held businesses operating for profit or non-for-profit.

[00:27:37] So if it's not government, it's a private business pretty much.

[00:27:41] Right.

[00:27:41] Yeah.

[00:27:42] Um, so yeah, that's if you basically you work for a private business, if you don't work

[00:27:47] for the government, these rules apply.

[00:27:49] Yep.

[00:27:49] And that is it folks.

[00:27:52] How do we do on time?

[00:27:53] Not the safe talk question name, not the safe talk.

[00:27:58] Should get workers, gig workers,

[00:28:01] gig workers receive the same payroll deduction protections and benefits as traditional employees.

[00:28:08] And how would this impact California's economy and workforce innovation?

[00:28:12] But they don't know because it could cause gig workers are considered independent.

[00:28:17] 1099.

[00:28:17] Is that what you're saying?

[00:28:18] Yeah, I don't think.

[00:28:19] Yeah, no.

[00:28:20] And see the good thing in Cali.

[00:28:23] They are again, very employee centric.

[00:28:26] So you can't really, if you're a gig worker, you really are a gig worker.

[00:28:30] Yep.

[00:28:31] You're a contractor.

[00:28:32] You're a private contractor.

[00:28:33] I think gig worker downplays the, I don't know what the sophistication of you have to

[00:28:41] be a little bit more savvy.

[00:28:43] You got to do a little bit more on your running.

[00:28:45] You you're 1099.

[00:28:46] You're like operating a business.

[00:28:48] Yeah.

[00:28:48] Right.

[00:28:49] And look, there are still some protections that they have.

[00:28:52] They may not have any protections.

[00:28:54] I believe it.

[00:28:54] Especially in Cali.

[00:28:55] I believe it.

[00:28:55] Yeah, as the employees, you generally cannot deduct from an independent contractor's payment

[00:29:00] for damages unless there is a clear contractual agreement allowing for that.

[00:29:08] Okay.

[00:29:09] So say that you have a contractor doing something or building something, they break something

[00:29:12] by mistake.

[00:29:13] But if it's not written out like, hey, you have to pay us back or we'll deduct from your payment

[00:29:17] for any damages.

[00:29:19] Right.

[00:29:19] You can't really deduct from them.

[00:29:21] And now is that everywhere or just in Cali?

[00:29:24] This is for California.

[00:29:25] Okay.

[00:29:26] Yeah, I believe it.

[00:29:27] Yeah, but look, I love it.

[00:29:28] I really respect Cali for that protection for their employee centricity.

[00:29:35] Yep.

[00:29:35] Word of the day.

[00:29:36] Centricity.

[00:29:38] Yeah.

[00:29:38] Look, and I think this is a state by state thing, but just again, general opinion is they

[00:29:43] should have some protections, but you are, I feel like in the 1099 world, you are your

[00:29:49] own business.

[00:29:50] You're taking a risk.

[00:29:51] You got to protect yourself.

[00:29:53] I think that's what they say.

[00:29:54] Hey, they're saying, hey, you're 1099 and you don't pay your taxes up front because you

[00:30:00] are taking a risk that you need to protect yourself from.

[00:30:03] We'll settle up at the end of the year.

[00:30:05] Yep.

[00:30:06] So I think you got to take the good with the bad.

[00:30:08] That's why it's a risky thing, but some, some moderate protections should be in place

[00:30:13] for the workforce period and contractors are absolutely workforce.

[00:30:18] Businesses are part of the workforce.

[00:30:19] This is why some states are tax friendly for businesses to come in.

[00:30:23] Man, I love it, bro.

[00:30:24] I got to start taking notes down of the show ideas as we kind of go along.

[00:30:28] Cause it's so many things and not get distracted.

[00:30:30] So that's, that's helps keep us in that 30 minute that we don't, I don't put a whole

[00:30:34] segment in the show for no reason.

[00:30:36] Whoa, wait a minute.

[00:30:37] He's just opening a whole tangent.

[00:30:39] We both do it.

[00:30:40] We can talk forever.

[00:30:42] Not anymore.

[00:30:43] We only four minutes over.

[00:30:44] Well, not really.

[00:30:45] Cause we, cause we started recording for a little bit and we were still chit chatting

[00:30:48] before.

[00:30:50] So we're not even, come on now.

[00:30:52] We are efficient folks.

[00:30:55] We're machines.

[00:30:57] We're machines.

[00:30:58] We're machines.

[00:30:58] We're machines.

[00:31:00] Yes.

[00:31:01] Oh my gosh.

[00:31:04] All right, man.

[00:31:05] We'll go get these games.

[00:31:07] Enjoy.

[00:31:08] Yes.

[00:31:08] You too, man.

[00:31:09] Folks.

[00:31:10] Thank you.

[00:31:10] We love you.

[00:31:11] Till the next time.

[00:31:12] All right.

[00:31:13] Go vote.

[00:31:14] Yeah.

[00:31:14] Go vote.

[00:31:16] Hope you voted.

[00:31:17] Before we sign off.

[00:31:19] Here are a couple of quick things.

[00:31:20] Don't forget to follow.

[00:31:22] It's about payroll on LinkedIn and it's about your paycheck on Facebook and

[00:31:26] tick tock.

[00:31:27] Thank you for being part of our payroll community.

[00:31:30] And thank you for being a part of this journey with us until the next time.

[00:31:35] Keep learning, keep growing.

[00:31:36] And most importantly, keep going.

[00:31:38] We'll be right back.