Are employers allowed to make deductions from an employee’s wages in order to cover costs?
Yes, employers in the state of Washington are allowed to make deductions from an employee’s wages in order to cover costs. This is subject to certain criteria set by the state, however. According to the Employment Security Department in Washington, employers can make deductions from an employee’s wages when such deductions are required by federal or state laws or regulations. They can also make deductions when the deductions are used to cover costs necessary to administer the employer-employee relationship, such as the cost of uniforms, tools, dues and assessments, contributions to employee benefit plans, or other items directly related to the employee’s employment. Employers are also permitted to make deductions from an employee’s wages if the employee has given written authorization for the deduction. This authorization must include the amount of money to be deducted, the purpose of the deduction, and when the deduction is to begin. Additionally, employers are allowed to make deductions to recover overpayments of wages or salary paid to the employee in error. When making deductions from an employee’s wages, employers are required to follow the terms laid out in Washington’s Minimum Wage Act. This act states that deductions must be reasonable and not reduce the employee’s wages below the minimum wage rate. Moreover, employers must provide written notice to employees in advance of the deductions and keep accurate records of the deductions. Failure to comply with these laws may result in fines and other penalties.
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