Permitted and Prohibited Pay Deductions: New Quick Reference Chart Added

Author: Rena Pirsos, XpertHR Legal Editor

Employers must comply with both federal and state wage payment laws, as anything not regulated by federal law is left to state regulation. Because the Fair Labor Standards Act (FLSA) does not regulate the payment of wages in detail, employers must comply with any state wage payment law that is stricter than the FLSA.

For example, the FLSA allows an employer to deduct the cost of a uniform from an employee's pay; but if state law prohibits a similar deduction, the employer must follow the state law and not make the deduction.

To help employers comply with differing state wage payment laws, a new chart has been added to the Quick Reference Tool summarizing each state's law regarding the types of pay deductions employers are permitted, or not permitted, to make and the penalties that apply if an employer fails to comply with the law.