Under what circumstances can an employer take deductions from an employees wages?
The Act generally limits the employer from taking deductions from an employee’s wages unless the deduction is authorized by law, by collective bargaining agreement, or by the voluntary written consent of the employee. The Act also allows the employer to take deductions from the employee’s wages in certain circumstances to correct a payroll error that results in an overpayment of wages.
Related Questions
- Can an employer withhold pay or make deductions from an employees pay for cash shortages, damage to the employers property or for any other such reason?
- Can an employee file a suit against his employer seeking injunction restraining the employer from making any deductions from his wages?
- Does the Act require the employer to increase employee’s wages periodically?
