What types of deductions can be made from an employee’s wages?
As long as the employee supplies written authorization, the employer can make deductions for borrowed money from the company or a third party. Of course, required deductions, such as taxes, can also be made. Employees must provide written permission to make non-tax related deductions. “Blanket” authorizations covering future deductions are not valid. Furthermore, deductions can reduce a worker’s pay beneath the minimum wage. Additionally, deductions must be for the employee’s benefit.
Related Questions
- Can an employee file a suit against his employer seeking injunction restraining the employer from making any deductions from his wages?
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