The federal law on pay deductions for nonexempt employees is rather liberal compared to the laws in many states. Under federal law, almost any deduction is permitted, even if it reduces the employee's pay below the minimum wage in some cases. Exempt employees should not have any deductions from their pay without prior agreement between the employer and the employee.
Seemingly Reasonable Changes May Run Afoul of the 'Salary Basis' Test
The Department of Labor recently issued an opinion letter (see FLSA 2006-7) to a lawyer in response to his letter asking whether his client, an employer, would violate the salary basis test if fines were imposed, in the form of deductions from the salaries of exempt employees, for damages to, or loss of, equipment such as laptop computers that the exempt employees used in the performance of their jobs.
Workplace Drug Use Rose in 2000
A steady, decade-long decline in workplace drug use has ended. A provider of employer drug-testing services reports that its semi-annual Drug Testing Index shows drug use in the U.S. went up in 2000.
Gap Resolves 'Uniform' Dispute
Gap Inc. has agreed to settle a class action lawsuit charging that the retail
clothing company violated California labor laws by requiring employees to buy
and wear Gap brand clothing and accessories while on the job.
Foreign Workers Get Back Wages for Visa Fees
Ajilon Consulting has agreed to pay $466,483 in
back wages to 202 temporary foreign workers after Department of Labor investigators said the company violated federal rules
by requiring workers to reimburse the company for paying their visa application
fees.
