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

In Pennsylvania, employers are able to make deductions from an employee’s wages in order to cover costs in certain circumstances. Depending on the type of deduction, additional requirements may need to be met before an employer is legally allowed to do so. If the deduction is for repayment of an advance or loan that the employee requested or for payment for goods or services that the employee requested, there must be written authorization from the employee before the employer can make the deduction. If the deduction is for union dues and assessments, the employee must provide written authorization to the employer. If the deduction is for taxes, social security, or pension contributions, the employer is allowed to deduct such amounts without written authorization. If the deduction is to cover expenses the employer incurred on the employee’s behalf, the employer must provide the employee with detailed written notice of the amount, purpose, and justification of the deduction before the employer can take the deduction. In all cases, the deductions must be clearly stated in the employee’s wage statement. It is also important to note that employers in Pennsylvania are not allowed to deduct from an employee’s wages in order to cover the cost of any merchandise or supplies that the employee did not request or authorize in writing or for any mistake or loss resulting from the employee’s work. Overall, employers in Pennsylvania are allowed to deduct from an employee’s wages in order to cover costs in certain situations, as long as the deductions comply with Pennsylvania’s Employment Contracts Law. In all cases, the employer must provide the employee with written notice of the amount, purpose, and justification of the deduction before they can make the deduction.

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

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