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Reducing/Deducting an Employee's Wages

Reducing/Deducting an Employee's Wages

Reduction

An employer may reduce an employee’s wages, providing the employee is given a 30-day advance written notice of a reduction in wages. This notice requirement does not apply if an employee is asked to work fewer hours or changes to a different position with different duties. Any company or corporation violating this requirement shall pay each affected person $50, which can be recovered through court action.

Deduction

An employer may deduct funds from an employee’s wages for cash register shortages, damage to equipment, repayment of a cash advance or loan, for purchases made at the place of business, or for similar reasons. Deductions can be made from an employee’s wages as long as the deductions do not take the employee’s wages below the required minimum hourly wage rate.