If you have borrowed money from a third party, you can give the employer written permission to deduct payments from your earnings. If your employer has loaned you funds, s/he can deduct the amount from your earnings as long as you have given written authorization. Of course, normal tax deductions must be made. The thing to remember regarding deductions from your paycheck is that you must give written authorization to your employer to make such nontax related deductions. It is not valid to sign a “blanket” authorization at the time of hire to cover any future deductions. Further, as a rule, deductions cannot reduce your gross pay below minimum wage, and the deductions must be to the benefit of the employee.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified employment lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact an attorney in your area from our directory to discuss your specific legal situation.