Employer Withholding or Deducting Wages
LIST Code: WO-02-04-08-00
LIST Code
WO-02-04-08-00
Title
Employer Withholding or Deducting Wages
Definition
Legal issues related to an employer withholding, deducting, or taking wages or tips without legal authorization, including deductions for alleged shortages, mistakes, damage, or losses the worker did not agree to or cause. This legal issue covers situations where an employer reduces or withholds a worker’s pay without proper legal authority or the worker’s consent. This includes deductions taken from paychecks for cash shortages, breakage, mistakes, uniforms, or other losses when the worker did not agree in writing, did not cause the loss, or when such deductions are prohibited by law. This category also includes tip theft, such as when an employer keeps some or all of a worker’s tips, requires tips to be shared improperly, or uses tips to cover business expenses or losses. In many jurisdictions, tips belong to the worker and cannot be taken or used to reduce wages below minimum wage. In addition, this issue covers ongoing or repeated unauthorized deductions even after the worker objects, as well as retaliation concerns when a worker complains. Legal considerations may include minimum wage and overtime laws, tip protection rules, record-keeping requirements, and state or federal wage enforcement processes.