Deductions. Deductions. Wage Deductions – What’s Legal?

We get a lot of calls from prospective clients regarding wage deductions from paychecks. The question is simple enough: Can an employer make wage deductions from my paycheck? However, the answer – as in most things legal – isn’t as simple as the question may seem.

Wage deductions come in all forms, some permissible and some impressible. Among the obvious permissible deductions are employment related taxes and child support obligations. However, there are two types of “other” deductions that require special attention: 1) deductions authorized by the employee and 2) deductions that are not authorized by the employee.

First, it may seem that any wage deduction authorized by an employee would be a valid deduction. In other words, many employees and employers alike, believe that if an employee signs a piece of paper that says the employee authorizes X amount to be deducted from their paycheck, then it is a permissible deduction. This assumption may not be true.

Many times an employer will try to guise an improper wage deduction into the form of an advance or a loan to an employee. Take for example, a wage deduction for damage due to a workplace accident, such as, a cash register shortage due to user error, accidentally breaking glassware, getting into a vehicle accident while at work, etc. These types of wage deductions are considered a “cost of doing business” and may not be passed along to the employee if the deductions cut into the minimum wage pay or cut into the overtime premium owed to the employee. This remains true even if an employee authorized the employer to make wage deductions for an item that is considered a cost of doing business. Ultimately, whether wage deductions are improper or proper is a question that can only be deciphered with legal consultation.

Second, wage deductions that are not authorized by law (e.g. taxes or child support) or by the employee in a signed writing is a violation of the Texas Payday Act. You should consult with an attorney to determine whether you have a claim under the Texas Payday Act or any other wage laws.

If you have questions about deductions from your wages, the employment lawyers at Herrmann Law are happy to answer you questions: 817-479-9229. Please call and schedule a consultation with an employment attorney.

*This article is not legal advice. The information contained in this article is informational and you should not rely on it instead of legal advice specific to your situation. Drew N. Herrmann is licensed to practice law in Texas. The law in your state may be different than what is discussed in this article. Further, the state law in your state may change the analysis or outcome of the facts or law described in this article.