Are deductions from wages allowed under employment contracts?

Yes, deductions from wages are allowed under employment contracts in Hawaii. According to the Hawaii Department of Labor and Industrial Relations, an employer may, with the written agreement and authorization of the employee, deduct from wages “for the purpose of paying for benefit programs or insurance premiums, saving plans, vacation pay, sick pay, longevity pay, other wages in lieu of notice, or any other lawful benefit programs offered by the employer.” The employer can also deduct from wages for the following reasons: to pay for health care insurance, pension or other retirement plans, union dues or assessments if authorized by the employee, and other lawful assessments or deductions that are authorized by the employee. However, employers cannot deduct from an employee’s wages, or withhold any portion of an employee’s wages, without the written consent of the employee. Such deductions or withholdings must be for a lawful purpose, and must be consistent with the terms of the employment contract. In addition, employers are prohibited from deducting from an employee’s wages if such deductions would bring the employee’s wages below the minimum wage as required by law. If the employee’s wages are below the minimum wage due to deductions, the employer must make up the difference in order to ensure that the employee is receiving at least the minimum wage.

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Are deductions from wages allowed under employment contracts?

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