PAYROLL DEDUCTIONS
We are often asked what you can and can’t
deduct from an employee’s paycheck. Our typical
answer is that wages are sacred—deduct nothing
unless you are sure that you’re allowed. Here
are some things that you should not deduct:
-
Repayment for breakage or damage to
equipment, or cash shortages unless you
can absolutely prove that it was a
willful or deliberate act, dishonesty,
or gross negligence on the part of the
employee
-
The cost of a uniform, or the normal
wear and tear on uniforms
-
The balance of what an employee owes
you—say from a loan—from the final
paycheck (even if the employee agrees to
let you do this)
-
Payment for tools and equipment (except
hand tools, but the employee must be
making at least 2x the minimum wage)
-
Payment for a medical of physical
examination required by any federal,
state or municipal law
-
The cost of a bond if the employee must
be bonded
-
The cost of an employee’s photograph if
you require it
-
Tips that were left for the employee
(although you can have tip pools)
-
Business expenses—these are the
employer’s responsibility and not
reimbursing them would be like docking
pay
-
Deductions for turning in a timecard
late or not turning one in at all
-
Deductions from unidentified returns on
commission sales
What you can do is
take disciplinary action when an employee
violates your policies and procedures. But
do
not take disciplinary against an employee
because
the employee protests a deduction or files a
wage claim. |
