The FLSA covers deductions that can legitimately bring a worker`s wage below the minimum wage. In some circumstances, the following positions can legitimately drop the employee`s wage below the minimum wage: also remember that even if an employee accepts the deduction, the deduction cannot bring the employee`s wage below the minimum wage, unless it has been authorized by the FLSA. 1. meals and accommodation made available to the worker as long as the employer does not benefit from meals and accommodation; 2. Tip credits – employees who have tips may earn less than minimum wage; 3. Transfers of voluntary salaries may be deducted from the employer, typically for pension contributions, deduction for health insurance, etc.; 4. repayment of credits and salary advances; 5. shortage of cash due to cash misappropriation; 6. Deductions ordered by the courts or authorized by law. Note that only deductions ordered by court or permitted by law may be deducted from the above list, without prior written consent, from an employee`s paycheque. It is generally recommended that employers obtain, at the time of hiring, an authorization to deduct these expenses, as well as the completion of all other documents prescribed by law.
It is important that the authorisation agreement is not too broad, but that it nevertheless adequately covers the likely deductions that the employer may have to make from the worker`s wages. Without the worker`s written permission, the Texas Pay Day Act allows an employer to make deductions only if they are ordered by a court (child support) or approved by state or federal laws (withholding income tax). All other deductions must be made in writing and signed by the worker. TAKEAWAY: Before making deductions from an employee`s salary, you must first consider whether the deductions are allowed by federal law or by a court order. If the deduction is not allowed, you must have an agreement signed by the employee. Finally, you need to think about whether the deductions would have the effect of bringing the worker`s wage below the minimum wage. We are often faced with the question of what deductions an employer can make from a worker`s paycheque. The confusion over the law is not surprising, given the discrepancies between the federal law – the Fair Labor Standards Act (FLSA) and the Texas Payday Law. The FLSA covers deductions from an employee`s minimum wage that cause the worker`s wage to fall below the minimum wage.
Texas Payday Law covers deductions from the salary of all employees. The texas Labor Force Commission`s values: community, responsibility, innovation, responsibility, commitment to excellence and partnership. Tools and services are available upon request for people with disabilities. Customers who are deaf, hard of hearing, or hard of hearing can contact Relay Texas: 800-735-2989 (TTY) and 711 (Voice). Equal opportunities are the law. The Texas Workforce Commission makes available on its website a model agreement for the approval of the payroll deduction – click here. – The Scott | Business Team Josh| Jeremy The site you requested is not available. We apologize for the inconvenience and would like to help you find the information you need. . You can use the menus at the top of this page, check our sitemap, or browse our website: ©2011 Texas Workforce Commission Sitemap Report Political Fraud: 800-252-3642. . .