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Unpaid Wages and Unpaid Overtime Lawyers

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Mansell Law

As an employee, it is important to be aware of your rights regarding your wages and salary. One of the most significant protections that employees have is against improper deductions from their wages. The Fair Labor Standards Act (FLSA) outlines the rules for what types of deductions are permissible and when employers can take them. Improper deductions can result in the loss of an exemption for employers and a loss of pay for employees. In this blog post, we will explore what constitutes an improper deduction from wages and what protections employees have.


Firstly, let's define what constitutes an improper deduction from wages. According to the FLSA, an improper deduction is any deduction made by an employer from an employee's predetermined amount of pay each pay period that violates the FLSA's regulations. Some examples of improper deductions include:


• Deductions for partial-day absences;


• Deductions for disciplinary actions such as warnings or write-ups;


• Deductions for the cost of uniforms or other necessary equipment;


• Deductions for shortages or damages caused by the employee;


• Deductions for cash register shortages; and


• Deductions for tips paid to employees by customers.


These examples are not exhaustive, and it is essential to know your rights regarding your pay.


However, there are some situations in which deductions are permissible. For example, an employer can make deductions for absences from work for personal reasons, as long as the absence is for a full day or more. Additionally, employers can make deductions for absences due to sickness or disability, but only if the deduction is made in accordance with a bona fide plan or policy.


If an employer makes an improper deduction, the employee has the right to seek restitution for the amount withheld. However, the process for doing so can be complicated, and it is best to consult with an attorney who specializes in labor law.


It is important to note that an employer can lose an exemption from the FLSA if they have an "actual practice" of making improper deductions. If an employer loses this exemption, it could result in significant financial penalties for the employer, as well as loss of pay for employees.


Fortunately, there are protections in place for employees. The FLSA includes a "safe harbor" provision that protects employers from losing their exemption if they meet certain requirements. To qualify for the safe harbor, an employer must have a clearly communicated policy prohibiting improper deductions, a process for employees to voice complaints about improper deductions, reimburse employees for improper deductions, and make a good faith effort to comply with the FLSA in the future.


In conclusion, improper deductions from wages can have significant consequences for both employers and employees. It is crucial to be aware of your rights and to consult with an attorney if you believe that your employer has made an improper deduction from your wages. Additionally, employers should ensure that they are in compliance with the FLSA's regulations regarding deductions and take steps to prevent improper deductions from occurring in the future.


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