Can I deduct losses from shortages or breakage from employees salary?
Except for the tip credit and the meal and lodging credit, the federal law permits no other deduction from the wages of a minimum wage employee. That means that losses from shortages, breakage, walkouts and the like may not be deducted from the wages of a minimum wage employee, nor can a minimum wage employee be required to pay for such losses, directly or indirectly. For those employees being paid in excess of the minimum wage, deductions for such losses may be made, but only to the extent of the excess and only with the prior written consent of the employee. It is also important to note that tipped employees may not be required to pay for such losses from their tips.
