Employer-initiated Payroll Deductions
Employers are limited by state law in what they can withhold from employees’ paychecks. Specific laws vary, but permissible deductions generally include:
- Withholdings authorized by law (such as federal and state income tax)
- Court-ordered deductions (such as wage garnishments for child support)
Employees generally must approve other deductions from their paychecks. Examples of items employers may not be able to deduct, unless state law allows, include costs:
- Unreturned company equipment
- Damaged company property
- Defective or faulty workmanship
To ensure that deductions that require consent are done properly, consider using a payroll deduction authorization form granting the employer power to withhold specific deductions from an employee’s wages. Employers should also become familiar with laws concerning payroll deductions in their states.
In December 2014, the U.S. Supreme Court ruled that companies that require workers to go through security screenings do not need to pay employees for the time they spend waiting in line.
In a unanimous decision, the Supreme Court held that an employee’s time spent going through a security screening before leaving the workplace is not an integral and indispensable part of the employee’s principal activities. Therefore, this time is not compensable under the Fair Labor Standards Act (FLSA).
The case was brought before the Supreme Court by Amazon employees who took action against a contracted security company responsible for screening workers at the end of their shifts.
DOJ TO ALLOW CLAIMS BASED ON GENDER IDENTITY DISCRIMINATION
On Dec. 18, 2014, the U.S. Department of Justice (DOJ) released an opinion allowing a worker to file a discrimination claim based on the individual’s gender identity, including transgender status.
We wrote about Family Discrimination and how it can affect your company, this is a new emerging risk leaders need to be aware of.
In a reversal of a previous finding, the DOJ decided that Title VII of the 1964 Civil Rights Act extends to discrimination claims based on an individual’s gender identity, including transgender status. Title VII prohibits employers from discriminating on the basis of race, color, religion, sex or national origin when making employment decisions. read more....