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

In Tennessee, employers are legally allowed to deduct wages from an employee’s paycheck as long as the deductions are authorized by the employee in writing. The deduction must also be for a legitimate business purpose, such as for taxes or debt repayment. In addition, Tennessee law requires that employers provide a written statement of deductions to the employee within 30 days of the deductions. This statement must include the amount and purpose of the deduction. Employers are also allowed to deduct wages for certain types of benefit plans, such as health, life, and disability insurance coverage, or for contributions to retirement and savings plans. However, these deductions must be provided for in the employee’s written agreement. Furthermore, wages may not be deducted for damage to equipment or materials unless the employee has admitted to being negligent. Employers may also not deduct from pay if the employee has not been provided with 30 days written notice. Finally, employers cannot withhold wages for disciplinary purposes or to offset employee deductions such as advances or vacation time. Any such deductions must be agreed upon in writing by the employee and employer. Overall, employers in Tennessee are only allowed to deduct wages from an employee’s paycheck if the employee has agreed in writing to the deduction and the deduction is for a legitimate business purpose.

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

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