Deductions from Wages

Effective Nov. 6, 2012, employers that have employees’ written consent can take certain additional categories of allowed wage deductions and use such deductions to recapture overpayments and receive repayments for salary advances.

Effective Nov. 6, 2012, employers must provide employees with written notice explaining terms, conditions, and details related to the processing of voluntary wage deductions. Voluntary deductions from employee wages may be made up to employer- or employee-established limits for payments for prepaid legal plans; charitable event purchases; discounted mass transit passes, tokens, fare cards, and vouchers; fitness memberships; cafeteria, vending machine, and pharmacy purchases at the employer’s place of business or at the employer’s gift shop, if the employer is a hospital, college, or university; educational expenses; and certain nonprofit hospital housing.

Wages can also be deducted to recover wage overpayments, repayment of salary advances, and in conjunction with an employer sponsored pre-tax contribution plan. No wage deductions may be made except those specified or those allowed or permitted under collective bargaining agreement, and the employee must have access to information.