Cash Bonds and Deposits

You cannot demand cash bonds from an employee, unless the employee is entrusted with property of an equivalent value or the bond is in an amount equivalent to the value of goods, wares or merchandise periodically advanced to the employee.¹ If cash is received as a bond, the cash must be deposited in a savings account in a bank authorized to do business in California and may be withdrawn only upon the joint signatures of the employer and the employee.² You must return any money that was put up as a bond or deposit to the employee with accrued interest immediately upon return of the property.³ You can’t commingle property put up as a bond with your property; this is viewed as theft under the Penal Code.⁴