Cal. Codes » Labor Code / DIVISION 2. EMPLOYMENT REGULATION AND SUPERVISION / PART 1. COMPENSATION / CHAPTER 3. Privileges and Perquisites / ARTICLE 2. Bonds and Photographs
California Codes

Cal. Labor Code § 406 (2026)

Bonds and Photographs

✓ current as of May 2026
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Any property put up by an employee, or applicant as a part of the contract of employment, directly or indirectly, shall be deemed to be put up as a bond and is subject to the provisions of this article whether the property is put up on a note or as a loan or an investment and regardless of the wording of the agreement under which it is put up.

Notes of Decisions
Cited in 3 cases, 1955–2015 · leading case: Lusby v. Gamestop Inc., 297 F.R.D. 400 (N.D. Cal. 2013).
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Lusby v. Gamestop Inc., 297 F.R.D. 400 (N.D. Cal. 2013). “Labor Code § 203 ); (5) Failure to Reimburse Expenses and/or Prohibited Cash Bond ( Cal. Labor Code §§ 406 and 2802); (6) Unfair Business Practices Under the Unfair Competition Act ( Cal.”
People v. Pond, 284 P.2d 793 (Cal. 1955). “[Lab. Code, § 406.] “You are instructed that no employer shall demand, exact or accept any cash bond from any employee or applicant unless: “(a) The employee or applicant is entrusted with property of an equivalent value, or “(b) The employer advances regularly to the employee…”
Kudrna v. Propark Am. West CA1/3 (Cal. Ct. App. 2015). “…failure to pay minimum wage (IWC Order, § 4; Lab. Code, § 1198), (7) failure to reimburse expenses (IWC Order, § 9; Lab. Code, §§ 406, 1998, 2802, subd. (a)), (8) failure to provide suitable seating (IWC Order, § 14; Lab. Code, § 1198), (9) unlawful policy or practice…”
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