Taxes and court-ordered garnishments are required. Deductions for benefits you elected are lawful with authorisation. Deductions primarily for the employer's benefit — cash shortages, breakages, uniforms, tools — may not reduce your pay below the minimum wage or cut into overtime under federal law, and many states prohibit them outright or require written consent for any deduction.
The three categories
Required. Federal, state and local taxes, Social Security and Medicare, and court-ordered garnishments and support orders.
Permitted with authorisation. Health premiums, retirement contributions, union dues where applicable, and voluntary items you signed up for. The authorisation should be specific and in writing.
For the employer’s benefit. Till shortages, breakage, walkouts, damage to equipment, required uniforms and tools. These are the disputed ones.
The federal floor
A deduction in the third category cannot take you below the minimum wage in that workweek, and cannot reduce overtime pay at all. So a $50 till shortage deducted from someone earning close to the minimum is unlawful for whatever portion drops them under it.
Uniform costs are the most common example. If a required uniform’s cost pushes you below the minimum for the week, the employer must bear it.
States go considerably further
Many require written authorisation for any deduction not required by law, and several prohibit shortage and breakage deductions entirely regardless of your wage level. A signed blanket consent in a handbook is frequently not enough where a specific written authorisation is required.
What to check on your own stub
Every deduction should be identifiable and traceable to something you agreed to or something the law requires. An unexplained line, a deduction that appears without notice, or one that changes without a corresponding election is worth a question in writing.
The exempt employee twist
For salaried exempt staff, improper deductions can destroy the overtime exemption altogether, sometimes for an entire group of employees. So a deduction that looks like a small dispute can carry a much larger consequence for the employer than for you.
Common questions
Can my employer deduct for a cash shortage?
Not below the minimum wage or out of overtime under federal law, and many states prohibit it outright regardless of your wage level.
What about uniforms and tools?
They are for the employer's benefit, so their cost may not push your pay below the minimum wage for that workweek.
Does a handbook signature count as consent?
Often not. Several states require a specific written authorisation for each deduction rather than a blanket acknowledgement.
Which deductions are always allowed?
Taxes, Social Security and Medicare, and court-ordered garnishments and support orders.
Why do deductions matter for salaried staff?
Improper deductions can destroy the overtime exemption, sometimes for a whole group, which is a far larger consequence than the deduction itself.