The Fair Labor Standards Act (FLSA) allows deductions that take an employee’s wages below minimum wage so long as the deduction is not for the employer’s benefit. In general, insurance premium deductions are for the employee’s benefit, not for the employer’s, and are therefore allowable.
Can I deduct an overpayment of wages?
Under the Federal Labor Standards Act (FLSA) – the federal law governing wage and hour issues – employers can deduct the full amount of overpayments to employees, even if doing so would bring the employee’s wages below minimum wage for the pay period.
Can you deduct money from employees wages for damages?
Section 34 of the Basic Conditions of Employment Act 75 of 1997 allows an employer to make deductions from an employee’s salary, but only if he or she agrees to it in writing. … The loss or damage must have occurred in the course of employment. The loss or damage must have been as a result of the fault of the employee.
Can you deduct insurance premiums from final paycheck?
Deductions and Final Pay
For example, if you assume a portion of your employees’ health insurance premiums and if you pay the insurance carrier at the start of each month, you may deduct the employee’s premium from her final pay so she continues to receive health insurance for that month.
What can legally be deducted from wages?
A. Under California law, an employer may lawfully deduct the following from an employee’s wages: … Deductions expressly authorized in writing by the employee to cover insurance premiums, hospital or medical dues or other deductions not amounting to a rebate or deduction from the wage paid to the employee.
Should I tell my employer if they overpaid me?
If an employee does notice that an overpayment has occurred they should inform employers immediately. These overpayments will simply build up over time. But be warned, when the employer does notice the overpayments they can actually deduct it from the employee’s next salary.
How can I recover my overpayment of wages?
Employers can’t take money out of an employee’s pay to fix up a mistake or overpayment. Instead, the employer and employee should discuss and agree on a repayment arrangement. If the employee agrees to repay the money, a written agreement has to be made and has to set out: the reason for the overpayment.
Can my employer deduct money from my bank account?
If your employer overpaid you, federal law allows it to deduct the full overpayment from your future paycheck without your written consent. … If you were overpaid by direct deposit, your employer can reverse the transaction out of your bank account, but it must pay you for your time worked during the pay period.
Can an employer deduct pay without consent?
Employees who authorize voluntary deductions usually must consent to these deductions in a written document that outlines the amount to be deducted per pay period. The employer is generally not permitted to make a deduction in the absence of an employee’s written consent to a deduction.
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Can my employer force me to pay for damages?
The damage must be treated as a business expense. You can only require an employee to pay for damaged equipment, if the damage is done on purpose or because of gross negligence. Unless you have video footage of the incident, there is no way to prove why the equipment is damaged unless the employee confesses.
What can an employer deduct from final paycheck?
- Personal loans (cash advances, 401(k) or retirement loan payment, bail or bond payments, etc.)
- Personal purchases of a business’s goods or services such as: Food purchases from the cafeteria. …
- Employee’s health, dental, vision, and other insurance payments or co-payments.
How do I deduct health insurance premiums from my paycheck?
Most premiums are paid with pre-tax dollars, which means they are deducted from your wages before taxes are applied. Deducting them again as a medical expense would be “double-dipping.” You can only deduct the premiums if your employer included them in Box 1 (Gross Wages) of your W-2.
Do you deduct 401k from final paycheck?
Final Pay in California: Best Practices for Deductions
Take only the usual or ordinary deductions for taxes, insurance, 401(k), etc. In other words, there should be no deductions for anything that’s not a direct benefit to the employee.