Bulletin Item: Ruling On Deductions From Employee Bonuses Stands

Earlier we reported on a California appeal court ruling challenging Ralph’s Grocery Co.’s practice of subtracting certain expenses—including the store’s workers’ compensation costs and cash and merchandise shortages—when calculating employee profit-based bonuses. Now the California Supreme Court has declined to review the appeal court ruling holding that the grocer’s practice violated various Labor Code and Industrial Welfare Commission Wage Order provisions.