According to the Fair Labor Standards Act (FLSA), workers must be paid at least the federal minimum wage for all hours worked plus overtime compensation at half their usual rate of pay for any hours worked above 40 in a workweek. It also prohibits employers from using certain deductions to reduce an employee’s wages below the required minimum, such as unlawful paycheck deductions.
What is considered a lawful deduction from your paycheck- deductions for items/services you provide are permitted under federal law. Deductions must be expressly authorized in writing by employees and employers before they can go into effect.
Examples include voluntary wage assignments such as charitable donations; pension plan premiums; medical insurance coverage, or other benefits offered through an independent contractor agreement with a third-party provider (for example: dental and vision plans); union dues and initiation fees unless otherwise prohibited by collective bargaining agreements; life insurance premiums paid on behalf of employees if certain conditions were met; repayment of overpayments to current employees; repayment of unauthorized extension-of-credit loans made to employees by a creditor.
What is not a lawful deduction from your paycheck- cash shortages/dishonoured checks; losses due to breakage, damage or loss of equipment used by employees if the employer has failed to reimburse employees within 30 days after receiving reimbursement from insurance companies covering such loss; fines imposed against an employee as a result of violating work rules that are aimed at protecting property safety or health.
for example law prohibiting smoking in areas where there was a risk of fire; penalties imposed against an employee for coming late to open shop jobs when they were unable to obtain transportation on reasonable time notice; costs are resulting from operating vehicles outside prescribed manner provided by the law requiring operation with insurance coverage for public liability and property damage, or moving violations of any nature including speeding tickets.
Factors contributing to a violation- an employer has violated the FLSA if it requires employees to pay for any losses, such as cash register shortages or damaged tools. Even where an employee was responsible for a loss through their negligence, this does not permit employers to deduct the value of the loss from their wages unless they have first obtained permission to do so in writing.
Counts as “wages”- cash paid for hours worked, vacation or other leave time, expenses incurred on an employer’s behalf (such as tools and supplies), amounts required to be withheld by law.
Deductions are supposed only to happen when they benefit the company in some way! If you feel like your paycheck is being robbed of money that should be coming back out of what was taken away, it might help if you speak with a professional who can tell whether there is anything illegal at work! The best thing you can do for yourself is exactly how much money you should be getting, and that’s why we’re here to help!
Unlawful deduction of a wage claim is when an employee is forced to pay for costs not included in wages under federal or state law.
An employer cannot require deduction- when it is illegal, such as deductions that violate wage garnishment laws; repayment of a loan made by the employer if certain requirements are met (for example, repayment must be within 30 days after receiving reimbursement from insurance companies covering losses due to breakage, damage or loss of equipment); repay loans with interest at a rate no more than allowed by the statute governing usury.
To comply with the Fair Labor Standards Act (FLSA), employers are required to pay their workers at least the federal minimum wage, plus overtime pay equal to one-half of their customary rate of pay for any hours worked above 40 in a workweek. There are other restrictions on how businesses might lower a worker’s salary below the legal minimum wage, such as by improper payroll deductions.
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