HR Management & Compliance

Who Bears the Cost of Tools and Equipment?






Do California
employers have to pay for an employee’s tools and equipment that are needed to perform
the job?



– Jay in Modesto





Generally, if you require an employee to have certain tools and
equipment on the job, you must provide and maintain them at no cost to the
worker. But there is an exception: When an employee’s wages are at least two
times the minimum wage (that is, at least $16 per hour, based on the current
California minimum wage rate), you may require the employee to provide and
maintain his or her own hand tools and equipment, but not power tools,
customarily required by his or her trade or craft. Also, Cal/OSHA safety
standards may require you to provide certain protective equipment and safety
devices.

 

The Industrial
Welfare Commission Wage Orders permit employers to require a reasonable deposit
to secure the return of uniforms, tools, or equipment the employer furnishes to
an employee. “Reasonable” generally means the deposit amount shouldn’t exceed
the cost of the items supplied. You must provide the employee a receipt for the
deposit and return it with interest when the items are given back to you. You may
not take deductions for normal wear and tear. You must also follow detailed
rules regarding holding deposits, such as a prohibition against mingling
deposit funds with other employer funds.

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