Are employers allowed to withhold wages from employees?

In Maryland, employers are allowed to withhold wages from employees in some cases. This is known as wage deduction. These deductions must be legal and must also be for a valid business purpose. For example, an employer may deduct taxes, union dues, and insurance premiums from paychecks. However, deductions are limited by law. All deductions must be listed on the employee’s pay stub and employees must provide written authorization for any deduction. Employers must also be aware of state and federal laws, as not all deductions may be permissible. Also, employers are not allowed to deduct money from an employee’s paycheck to cover any losses that the employer may have incurred. This includes theft, bounced checks, and cash shortages. If any losses are incurred, the employer is responsible and should not take money out of the employee’s paycheck. Overall, employers are allowed to withhold wages from employees in some cases, however this is strictly regulated and must adhere to wage and hour laws in Maryland. Employees must be properly informed of any deductions taken from their paycheck and must provide written authorization for any deduction to be made. Employers should also be aware of what they are allowed and not allowed to deduct from an employee’s paycheck.

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