b. Photographs. If an employer requests a photo of a candidate or employee, the employer must bear the cost of the photo. Labour Code Article 401 a. Advice. An employer may not collect, take or receive tips or any part thereof granted or left for an employee or deduct from the salary due to an employee on the basis of a bonus granted or left to an employee. However, Article 351 of the Labor Code A restaurant may have a policy that allows pooling/tipping between employees who provide direct table service to customers. Example: Each company gives John Smith a laptop on his first day of work. The company wants to make sure John returns the computer after it separates, but the “value” of the computer is difficult to predict based on depreciation, technological changes, etc. Therefore, the amount of the proposed deduction is unknown and approval would be as follows: e. Business costs. An employee is entitled to be reimbursed by his employer for all costs or losses incurred as a direct result of the employee`s performance of his or her professional duties. Labour Act Section 2802 Let`s say the employee`s rate of pay is $7.75 per hour and he works 40 hours a week, so his salary is $310 a week.
In this scenario, the employer could legally deduct up to $0.50 for each hour worked by the employee during a work week, as this would not reduce the employee`s rate of pay to less than $7.25 per hour. Thus, if the employee worked 40 hours per week, the maximum amount the employer could deduct for that week is $20 ($0.50 x 40). If the employee worked 30 hours per week, the maximum amount the employer could deduct is $15 ($0.50 x 30). The employer could deduct the maximum amount each week for the number of weeks it takes for uniform expenses to be fully reimbursed. d. Uniforms. If an employer requires an employee to wear a uniform, they must bear the cost of the uniform. Labour Code Section 2802, Industrial Welfare Commission Orders, Section 9. The term “uniform” includes clothing and accessories with a distinctive design and colour.
An employer may lawfully withhold amounts from an employee`s wages only: (1) if required or permitted to do so under federal or state law, or (2) if a deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions that do not constitute a discount on the employee`s salary, or (3) if a deduction is made to cover health, social or pension contributions are expressly approved by a wage or collective agreement. Articles 221 and 224 of the Labour Code. Although a wage garnishment is a legal deduction from wages under article 224 of the Labour Code, an employer cannot dismiss an employee because the wages have been threatened or if the employee`s wages have been seized for the payment of a judgment. Labor Code Section 2929(a) (see How to File a Discrimination Complaint) I, Sally Jones, understand that if my cash drawer is “short” for any reason, the payroll deduction will be made to compensate for the shortfall in my paycheck for the pay period after the date the deficit was discovered. Therefore, employers should exercise caution when using payroll deduction agreements to ensure that an employee`s effective rate of pay is not lowered below the minimum wage requirement or the one-and-a-half-hour overtime wage requirement. Deductions for employer performance are limited as follows: (a) during non-overtime work weeks, wages may be lowered to the minimum wage level, but may not fall below the minimum wage (currently $7.25 per hour), and (b) during overtime weeks, wages for the first 40 hours may be reduced to the minimum wage level; However, NO deduction can be made on full-time pay and half of overtime (based on the employee`s regular rate of pay). Deductions for employee performance are not limited. Wage advances to an employee or a third party at the employee`s request and the principal amount of loans granted by an employer to an employee are considered an “advance payment” of wages, and the repayment of these amounts is not a deduction from wages; Therefore, written approval of the refund is NOT required and there is no limit to the amount of reimbursement by the employee. However, if an employer charges interest or accounting fees to an employee, a signed authorization from the employee must be obtained before a deduction can be made from the interest or expenses, and restrictions on minimum wage and/or overtime and half-hour pay apply. An error in good faith by the employer that results in an employee overpayment of wages is also considered an “advance payment” of wages and can be claimed on subsequent wages, regardless of deduction requirements. In other words, employer advances on payment, the principal amount of an employer loan, and bona fide overpayment errors by the employer do NOT require an employee`s written permission for the employer to withdraw these “initial payment amounts,” and there is NO minimum wage and/or overtime pay limit. Note: The Federal Act on Wages and Hours of Work does not recognize the promotion of statutory holidays as wages; Therefore, federal law considers the reimbursement of the undeserved leave advance as a deduction from wages in favour of the employer.
Note: An employee may revoke their written authorization for a specific deduction if the deduction is in favor of the employee. Deductions in favour of the employee include, but are not limited to, savings plans, parking fees, charitable contributions and uniforms that are NOT required by the employer. Written authorization for certain deductions in favor of the employer can NOT be revoked by the employee. Deductions in favour of the employer include, but are not limited to, the use of the employer`s equipment, cash register shortages, inventory shortages and uniformed uniforms required by the employer. An employee must receive WRITTEN notice at least 24 hours before a wage increase or reduction takes effect. The old regulation did not define “prior” notice. The duty to give notice also applies to changes in commission/bonus formulas and production standards that result in a reduction in an employee`s salary. As in the past, salary increases can be granted retroactively. On December 1, 2005, Sally`s cash register cost just under $50. On December 2, 2005, the retail business sent Sally a written notice stating: “Pursuant to your signed authorization of November 1, 2005, a deduction of $50 will be made from your December 15, 2005 paycheque because you run out in the cash drawer on December 1, 2005. You have the right to withdraw your consent in writing before 15 December 2005. Written notice is given at least seven days in advance and no further approval from Sally is required. .