Are employers allowed to make deductions from an employee’s wages in order to cover costs?

Yes, employers are allowed to make deductions from an employee’s wages in order to cover costs in Michigan. It is important to note, however, that wage deductions must be for a lawful purpose and must not go against an employee’s rights. For example, an employer may be able to deduct the cost of items an employee purchased at their place of employment, but only if the employee has provided their written consent and the purchase is related to their work duties. Additionally, deductions for payroll taxes, health insurance, union dues, or other benefits are considered lawful deductions that are in compliance with Michigan law. But employers have to make sure that they are only deducting an amount that is in compliance with federal and state laws. Employers must also provide their employees with written notice of the deductions that they will be taking from their wages at least one pay period before the deduction takes effect. The employee must also be given the opportunity to consent or refuse to the deductions in writing. Overall, employers are allowed to make deductions from an employee’s wages in order to cover costs, but they must stay compliant with Michigan law and must only deduct for lawful purposes. Additionally, it is important that employers provide their employees with written notice and the opportunity to consent or refuse to the deductions.

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Are employers allowed to make deductions from an employee’s wages in order to cover costs?

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