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FLSA Violation If Wage Deductions Bring Employee Below Minimum Wage

If someone's paid $7.75, then you have 50 cents per hour that you could deduct while keeping them above the minimum wage.

Generally, you know, under the FLSA it doesn't necessarily regulate what types of deductions can be made from wages. It more so limits how much deductions can be made.

So, again we're not considering state laws here. So, the main thing that the FLSA tells us about deducting anything from an hourly employee's wages is that generally deductions will be a violation to the FLSA if they bring the employee's hourly wage below the minimum wage.

So right now, we're talking about seven and a quarter ($7.25) as a federal minimum wage.

That's something where if an employee is being paid at that minimum wage and you're going to take an otherwise permissible deduction from that person's pay, let's say for you the cost of a meal, you're going to be limited if they're right at the minimum wage.

If someone's paid $7.75, then you have 50 cents per hour that you could deduct while keeping them above the minimum wage.

But of course, if there's a minimum wage violation, if you go beyond that, a lot of states and locals have minimum wages of $15 an hour and climbing.

I'm assuming what you can or can't deduct and dropping below that minimum wage threshold will just depend on your local regulations and how those minimum wage laws are written differently than the federal standards.

Is that accurate? Right, exactly.

View this entire video:    • Illegal Vs Legal Reasons to Deduct Wages F...  

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Host: Mike Vannoy, VP of Marketing at Asure

Expert panelist: Brian J. Shenker, of counsel in the Long Island, New York, office of Jackson Lewis P.C.

#Wagededuction
#FLSA
#Minimumwage

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