Almost all states have laws regulating
how, when, where, and how often employees must be
paid. The state laws and regulations vary greatly
in this regard. However, all state laws provide for
certain
paycheck deductions. The federal government
requires employers to withhold federal income taxes
and social security taxes or courtordered attachments
against the employee's wages to pay debts, or spousal
or child support. The state law may make similar requirements
for the employer.
Most states also allow employers to deduct amounts
(only if it is agreed on and consented in writing
by the employee) for health and life insurance premiums,
hospital and surgical insurance, union dues, credit
union contributions, stock purchases, and retirement
and other benefit plans. The benefit plans should
benefit the employee, not the employer. There may
be deductions for repayment of loans to the employer
(if it is in written that the employee has taken the
loan).
In most states, employers are prohibited from deducting
money from an employee's pay for disciplinary reasons.
In some states, employers are allowed to deduct money
from an employee's paycheck to compensate for monetary
losses that the business suffered due to the employee's
dishonesty or negligence. Deductions must be spread
out over a series of paychecks, so that the amount
the employee receives during a given pay period does
not fall below the minimum wage.
Amounts that cannot be deducted
Most states strictly limit what employers can deduct
from an employee's wages. The regulations prohibit
deductions due to:
 |
Business losses |
|
Breakage, shortage or thefts
caused or committed by some third party |
|
An inducement to get or keep
the job |
|
Medical examinations required
by the employer |
|
Medical expenses for work-related
injuries |
