State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
October 07, 2010
General Information About Payroll Deductions and Risks of Improper Deductions

Cheryl Orr and Heather Sager discuss payroll deductions and risks of improper deductions in a BLR webinar entitled ‘Wage Payments: What You Can and Can’t Legally Deduct from Employees’ Pay’. They provide the following general information about payroll deductions.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

Non-exempt employees are paid for the time that the employees are actually working. Exempt employees are paid in full for any week in which these employees perform some work subject to some exceptions. It is important to make this distinction regarding payroll deductions because an improper payroll deduction can lead to a challenge or loss of the exempt status of workers.

  • Hourly Employees: Paid only for time worked
  • Exempt Employees: Paid full salary for any week in which they perform any work!. This is subject to exceptions.

Risks of improper deduction include the following:

  • The biggest risk is that an exempt employee might lose the exemption.
  • Class action lawsuits
  • Civil penalties for repeat or willful violations
  • ‘Window of Correction’. The Window of Correction allows employers the opportunity to correct incorrect employee classification

Cheryl D. Orr, Esq. is a partner and co-chair of the national Labor and Employment Practice Group at Drinker Biddle & Reath LLP (www.drinkerbiddle.com). She concentrates her practice on defending employers against FLSA collective actions and state and federal wage and hour class actions, and she regularly litigates discrimination, harassment, and unfair competition claims, conducts high-level workplace investigations, develops plans for reductions in force, and offers employer advice and counseling.

Heather M. Sager, Esq. is also a partner in the Labor and Employment Practice Group at Drinker Biddle & Reath LLP. Sager focuses her practice on management-side representation in collective and class actions, with particular experience in wage and hour litigation under state and federal law, including representative claims brought under California Business & Professions Code Section 17200.

Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB06
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Compensation/Deductions-from-Paychecks/General-Information-About-Payroll-Deductions-and-R/