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?

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1 Lawyer Answer
James L. Arrasmith
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Answered

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.

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