Are employers allowed to withhold wages from employees?

Yes, employers in Delaware are allowed to withhold wages from employees. Generally, employers are only permitted to make deductions or withholdings from wages if required or permitted by law, if authorized by the employee in writing for a lawful purpose, or if the deduction or withholding is reasonable and made in good faith. For example, employers in Delaware may withhold taxes from their employees’ wages in order to comply with Delaware and federal income tax withholding requirements. Employers may also withhold a part of the wages if the employee has authorized the deduction in writing, for things like child support payments, health insurance premiums, or retirement plan contributions. Employers are also allowed to deduct money from an employee’s pay if the employee owes money to the employer, such as an advance of wages, loan, overpayment of wages, or other debt. However, deductions must not reduce the employee’s wages below the minimum wage set by Delaware law. Finally, employers may make deductions for meals, housing, and other items that are necessary to the employee’s job. The deductions must be reasonable and done in good faith, and they must not reduce the employee’s wages below the minimum wage.

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