When can an employer legally deduct wages from an employee's paycheck?

In Pennsylvania, employers are allowed to deduct wages from an employee’s paycheck in certain circumstances. The deductions must be for the benefit of the employee, such as for insurance, retirement savings, healthcare, or other voluntary deductions. These types of deductions are legal as long as the employee has given written consent for the deduction. Employers are not allowed to reduce wages for disciplinary reasons, such as lateness, or for errors in work. If an employee is not paid the correct amount due to an error, the employer must make up the difference, and cannot take the money out of a later paycheck. Furthermore, deductions made due to a court order, such as for taxes, are allowable, as long as the deduction does not reduce the employee’s wages below the state or federal minimum wage. An employer is also legally allowed to deduct wages for other reasons mandated by law, such as for unpaid loans, health care costs, and fines. In any circumstances, employers must follow the Fair Labor Standards Act, which provides guidelines for when deductions can be made and how much can be deducted. These guidelines must be followed to ensure that employees are being fairly paid and that their wages are not being cut below legal requirements.

Related FAQs

What is the Fair Labor Standards Act (FLSA)?
What provisions does the FLSA provide for overtime pay?
What is the difference between an employee and an independent contractor?
What are the requirements for having a work week?
How should employers calculate overtime pay for employees who work multiple jobs?
What are the rules for paying salary employees overtime?
What type of records must employers provide regarding wages earned?
Are employers allowed to set a different hourly wage for part-time and full-time employees?
What are the rules for vacation pay?
What types of financial penalties can employers face for violating wage and hour laws?

When can an employer legally deduct wages from an employee's paycheck?

Related FAQs

Related Blog Posts