When is it OK for Employers to Deduct from Employee Pay?

December 12, 2016

Use these tips to tell what kinds of deductions are acceptable

Restaurants and other employers often question when they can lawfully deduct amounts from employee pay. The answer is difficult to ascertain because it can depend on a variety of factors, including whether the employee is exempt under the Fair Labor Standards Act (FLSA), in which state the employee is located, who benefits from the deduction, and whether the employee consents to the deduction. Of course, some deductions are not only permissible, they are required. But most deductions are either impermissible or permissible only in certain circumstances.

Mandatory Deductions

Employers