Can an employer require employees to pay for accidently breaking merchandise under CA employment laws

In California, the answer is definitely maybe. Most wage orders, which are the regulations applicable to each industry or occupation, contain a provision regarding cash shortages and breakage. The provision usually states, "No employer shall make any deduction form the wage or require any reimbursement from an employee for any cash shortage, breakage, or loss of equipment, unless it can be shown that the shortage, breakage, or loss is caused by a dishonest or willful act or by the gross negligence of the employee."

I am not aware of any case law that has upheld or overturned the particular wage order section noted above, but arguably the regulation may conflict with several Labor Code sections that limit an employers ability to withhold wages due.

Additionally, if an employer is wrong about the cause of the loss or breakage (i.e., it did not result from dishonesty, a willful act or gross negligence of the employer), the employer could be liable for unlawfully refusing to pay wages owed.

The conventional wisdom is "no" based on the wage orders.

If you are an employer, do so at your own risk. The potential damages in penalties and wages for getting this wrong can pile up quickly.

An employer cannot require you to pay for mistakes honestly or negligently made. In addition
to the wage orders, Ca. Lab. Code §2802 requires the employer to indemnify (that is, hold
harmless and not charge you) employees for such things. You are not your employer's
insurer.

Good luck,
Craig Byrnes
www.ctblawfirm.com

A clarification:

California Labor Code 2802 says that "An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful."

So the question is whether the loss was "necessary" and "in direct consequence of the discharge" of your duties. That's why the wage orders talk about purposeful misconduct or gross negligence. The wage orders are not the "end all, be all" of the law, though, and are often treated just as guides by the court. This statute is still open to quite a bit of interpretation in court, and probably will continue to be developed in the case law.

The bottom line: 99% of the situations are obvious in how the employer should treat losses caused by employees, but if there is ever a question, a lawyer should be consulted.