Wage Garnishing

[Cyndeyrn]

Can an employer deduct money from a paycheck without notifying the employee?  The employee was over-paid but wasn't aware of it because commission is included in each paycheck and it varies from month to month. The employer than began to deduct large sums from the employees paycheck without notifying the employee before-hand.  Do they have a legal obligation to notify the employee before they deduct?

ANSWER: The company does have to notify the employee before deduct from their wages. Many states have laws covering this and in some states thay cannot deduct without the employee's written authorization. Please let me know in which state you are located so I can look up the state code pertaining to deductions.

Shirley

---------- FOLLOW-UP ----------

Thank you.  The company is based out of PA but the employee works out of CT.

[Ander]

My thoughts are that the work is performed in Connecticut the Connecticut Department of Labor would have Jursidiction.

The Connecticut Department of Labor says the following concerning deductions from employees wages and I have included the statute numbers :

Withholding of part of wages.(Sec. 31-71e). No employer may withhold or divert any portion of an employee's wages unless(1) the employer is required or empowered to do so by state or federal law, or(2) the employer has written authorization from the employee for deductions on a form approved by the commissioner, or(3) the deductions are authorized by the employee, in writing, for medical, surgical or hospital care or service, without financial benefit to the employer and recorded in the employer's wage record book. To file a wage claim in Connecticut you would contact:

Mail: Connecticut Department of Labor

200 Folly Brook Boulevard

Wethersfield, CT 06109 Phone:(860) 263-6000 Email: [email protected] Now I will give you what the PA regulations are although it is usually the state where the work is performed that has authority.

Here is what the PA Department of Labor says and it is still not legal to deduct without written authorization.

What Can Be Deducted From My Paycheck?

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, it can deduct the amount from your earnings as long as you have given written authorization. Of course, normal tax deductions must be made. You must give written authorization to your employer to make such non-tax 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 for the employee's benefit.

PA Department of Labor has an unpaid wage claim form. Even though we are talking about deductions unauthorized they are still in essence unpaid wages:http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&q=201211

Their contact information is:

Pennsylvania Labor Relations Board

L&I Support Organization: Pennsylvania Labor Relations Board

Mandate/Authority: Pennsylvania Labor Relations Board, June 1, 1937, P.L. 1168, No. 294, as amended through May 11, 1949, P.L. 1221, 1.43 P.S. 211.4.

Mission: Conducts hearings and issues decisions and orders on public and private sector representation and unfair labor practice cases.

It is illegal in both states to deduct from wages without written authorization from the employee.  I would put a complaint in with both states and let them figure out which one has authority. Besides that maybe one state will be more active than the other...never know.

Shirley