deductions

Workers paying for uniforms? Or for cleaning them? Think again.

In two recent cases, employers were fined for violating minimum wage laws related to uniforms. Denny's in Houston was fined under the Fair Labor Standards Act for deducting the cost of workers' uniforms, since those deductions caused their pay to fall below minimum wage. In violation of New York state labor law, Eulen America, an [...]

November 4th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Employee’s case on charitable pay deductions fails: why employer won

Lawsuit claimed worker was "pressured" to make donations Charitable deductions straight from paychecks can be a great way for employees to easily donate to valuable causes. But just as with other wage deductions, the rules must be followed when Payroll sets them up. One employer did everything right with its voluntary payroll deductions for an [...]

September 17th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Deducting from wages for damaged property: employer’s big mistake

Employers that make deductions from employees' wages for damaged or missing equipment must follow the law carefully to stay out of hot water. In Galleher v. Artisanal LLC, an employer ended up in court because of its practice of regularly deducting the cost of any broken property, such as dishes and glassware, from workers' paychecks. [...]

June 25th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Electronic FLSA notices: when DOL says they’re OK

Whether or not employees are still working remotely to prevent the spread of the coronavirus, the Dept. of Labor (DOL) expects employers to comply with notice guidelines under federal law, though there is some flexibility. While employers must still post a printed, hard-copy notice on site to meet the requirements of the Fair Labor Standards [...]

June 9th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Don’t surprise employees with payroll deductions

It's important to be cautious when making deductions directly from workers' pay, especially if they're nonexempt and deductions could potentially make their pay fall below the minimum wage. Many states have rules requiring written consent from employees before wage deductions can be made for any reason, even if it's to repay a loan or overpayment. [...]

April 13th, 2021|deductions|

Payroll made wage deductions, but then what happened to the money?

Payroll made wage deductions, but then what happened to the money? Unremitted health plan contributions, $12K owed After you deduct health insurance premiums from wages, if you don’t remit the money to the health benefit plan in a timely manner, that can mean bad news for your company and employees. That’s what SmartCore LLC learned [...]

September 11th, 2020|deductions|