Deductions From Pay
1 hour 30 minutes
Learn how to avoid and/or correct improper deductions from an employee’s pay.
Employers frequently make deductions from an employee’s pay for a myriad of reasons and based on various factors. Many of these deductions are legal; however, there remain several improper payroll deductions employers must be aware of in order to avoid potential liability. This topic will help you determine which payroll deductions are permissible and which ones are impermissible under federal law, as well as in some cases under state law, as it relates to nonexempt versus exempt employees. The legal implications of having a regular practice of improper payroll deductions can in some cases be steep; therefore, this information seeks to provide you with the understanding of how to avoid those legal pitfalls.
• You will be able to describe the various types of permissible and impermissible payroll deductions for nonexempt and exempt employees.
• You will be able to discuss effects of improperly deducting from payroll.
• You will be able to explain the circumstances under which an employer may correct improper payroll deductions.
• You will be able to identify when payroll deductions are proper and/or improper.