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2019-01-20
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Can voluntary deductions take an employee below minimum wage?
The law places limits on voluntary deductions. The federal Fair Labor Standards Act (FLEA) requires employers to pay eligible employees at least the minimum wage for all hours worked. Voluntary deductions that reduce an employee's pay below the minimum wage are prohibited, with a couple of exceptions.
How much can you legally deduct from an employee's paycheck?
If the employee is paid an hourly wage of $9.25 per hour and worked 30 hours in the workweek, the maximum amount the employer could legally deduct from the employee's wages would be $60.00 ($2.00 × 30 hours), so the full $15.00 deduction for the cash register shortage would be allowed under law.
Can you deduct from an employee's paycheck?
Under federal law, the general rule is that employers may deduct certain expenses from their employees' paychecks, as long as the deductions don't bring the employee's earnings below the minimum wage. For example, some states prohibit employers from passing certain business costs on to employees.
What are illegal payroll deductions?
Illegal wage deductions generally include: Employment taxes that, by law, the employer must pay. Employers generally must pay the federal unemployment tax, known as FTA, as well as state unemployment taxes. Workers' compensation premiums.
How much can my employer charge me for health insurance?
On average, employers paid 82 percent of the premium, or $5,655 a year. Employees paid the remaining 18 percent, or $1,241 a year. For family coverage, the average policy totaled $19,616 a year with employers contributing, on average, 71 percent, or $13,927. Employees paid the remaining 29 percent or $5,689 a year.
Is it legal to dock pay for poor performance?
According to U.S. News and World Report, it is illegal for an employer to deny or adjust compensation retroactively as punishment for poor performance -- or for any reason at all. Since an employee entered into an agreement to exchange labor for fixed compensation, the employer does not have the right to dock her pay.
Is Docking someone's pay legal?
If you do your job you should get paid what you've been promised by your employer. Your boss is indeed legally allowed to reduce or dock your pay. But like all things in life there are exceptions. There are cases when reducing someone's promised pay can run afoul of labor laws.
Can an employer dock pay for damages?
This means that an employer will almost never be able to dock an employee's salary to recover damages or losses which the employee causes to the employer. Also, the employer will not easily be able to hold an employee to account for negligence or even intentional actions which cause the damage or losses.
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