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.

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

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