Your employer may have deducted expenses from your paycheck and you are wondering if this is permitted. Your employer may be able to deduct legitimate expenses that you take advantage of because of your work such as accommodation, meals and transport.
What your employer can and cannot deduct depends on both federal and state laws. There are some deductions which your employer may make which are not permitted.
These are examples of wage theft. There are avenues that you can take to prevent this from happening, recover deductions which are not permitted, or, if all else fails, file a lawsuit against your employer with the help of an employment attorney.
Laws on Pay Deductions
The main federal law that governs wage deductions is the Fair Labor Standards Act (FLSA). There are few things that the FLSA regards as not permitted when it comes to deductions.
That means that in most cases our employer is permitted to deduct reasonable costs that are favorable to you. For example, if you work in a fast food restaurant, you may be provided with meals the cost of which is deducted from your paycheck.
This is permitted. However, you may refuse the meals if you bring your own food and the employer is then not permitted to deduct the cost of a meal which you haven’t eaten.
Reasonable costs mean that an employer could charge for something you use for your own benefit but not if it makes a profit for the employer.
For example, say you work at a resort and are provided with a room at the resort, your employer is permitted to deduct a sum for the use of the room, but not the cost charged to a resort guest which would be priced to make a profit and therefore not a “reasonable cost.”
The FLSA does not permit deductions if the deductions mean that you do not earn the minimum wage, as long as your employer is subject to the FLSA (it must employ 15 or more than employees).
Other items that cannot be deducted from an employee’s wage are things that benefit the employer. For example, uniforms, tools, accommodation if an employee has to remain at work for extended periods overnight.
Some deductions may be permitted that you have consented to in writing. Examples include union fees and charitable contributions.
Title III of the Consumer Credit Protection Act (CCPA) prohibits deductions for authorized garnishment of unpaid debts or fines from an employee’s paycheck beyond a certain amount, e.g. more than 20% of an employee’s take home pay.
States may have their own laws on permitted deductions, so if you have had your paycheck deducted and it seems to be permitted under federal law but you are unsatisfied with the deduction, it is important to find out whether the state in which you work has different laws. Many states in fact have stricter Lawson employee deductions than the equivalent federal laws.
How to File a Complaint
If you think that your paycheck has been unfairly deducted, you need to find out whether the deductions are permitted or not by either federal or state law.
Employment law as it applies to deductions by employers is quite complex and it may be better to contact an employment lawyer to find out if the deductions constitute wage theft.
If you have good grounds for believing that the deductions are not permitted because of a clause in the FLSA, the CCPA or state employment law, you should initially file a complaint with the relevant labor office, such as the Wages and Hours Division of the Department of Labor.
The Labor Commissioner will endeavor to determine whether wage theft has occurred and maybe able to make your employer cease deductions and repay any deductions up to the point of your complaint.
If the complaint does not succeed in stopping illegal deductions, you may be advised to file a lawsuit.
Next Steps You Can Take
An employment law attorney can help you determine whether your employer is making deductions which are permitted or not and can advise you on your legal options including filing a lawsuit against your employer. Fill out a free evaluation today
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