Can employers deduct from an employee’s pay cash shortages, breakage or losses of equipment?

No. If, however, the employer can prove that the act was a “dishonest or willful act or gross negligence” of the employee, then deductions are permissible. (California Wage Orders, § 8) In cases of deductions, be certain that you leave the employee with not less than federal minimum wage (which is currently $5.15 per hour) for all hours worked.