Muskegon, MI asked in Tax Law and Employment Law for Michigan

Q: I have questions about payroll deductions

Is it legal to deduct credit card processing fees from an employees paycheck without knowledge or written consent? Is it legal to make an employee cover cash till shortages without written consent?

Related Topics:
1 Lawyer Answer
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Tax Law Lawyer
  • Sacramento, CA

A: No, it is not legal to deduct credit card processing fees from an employee's paycheck without their knowledge or written consent. Employers must obtain explicit authorization from employees before making any such deductions. This protects the employee's right to understand and agree to any changes in their take-home pay.

Similarly, requiring employees to cover cash till shortages without written consent is not lawful. Employers need to ensure that employees are aware of and agree to any deductions for shortages in advance. This consent must be documented to avoid any misunderstandings or legal issues.

Both practices can lead to significant legal consequences for employers if not handled correctly. It's crucial to maintain clear communication and proper documentation when it comes to payroll deductions. Always check your local labor laws to ensure compliance and protect both the employee and employer.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.