...
Summary of differences between federal and state regulations
Federal regulations restrict the types of deductions that can be made from an employee’s wages or salary. Deductions can be made in certain cases, but the legality often depends on the nature and purpose of the deductions, as well as the status of the employee as exempt or non-exempt.
Alaska allows deductions for cash or cash register shortages, lost, missing, or stolen property as long as the employee has admitted willingly and in writing, to having personally taken the specific amount of cash or property alleged to be lost, missing or stolen. If an employee has borrowed money from a third party, he or she can give the employer written permission to deduct payments from earnings.
If the employer has loaned funds to an employee, the employer can deduct the amount from earnings as long as the employee has given written authorization.
Employees must give written authorization to the employer for non-tax related deductions from a paycheck. It is not valid to sign a “blanket” authorization at the time of hire to cover future deductions. Further, as a general rule, deductions cannot reduce an employee’s gross pay below minimum wage or cut into overtime.
An employer may not require an employee to purchase a uniform or equipment if:
- the uniform or equipment is required by the federal state, or local safety or health codes, or
- the nature of the employer's business requires the use of either and if the uniform or equipment:
(A) is distinctive and advertises or is associated with the products or services of the employer; and
(B) cannot be worn or used during normal social activities of the employee.
State
Contact
Alaska Department of Labor and Workforce Development Division of Labor Standards and Safety
Regulations
8 AAC 15.160. Deductions from an employee's wages
8 AAC 15.165. Purchase of uniform or equipment
Federal
Contact
Regulations
For non-exempt employees:
29 CFR Part 531, Wage Payments under The Fair Labor Standards Act of 1938
For exempt employees:
29 CFR Part 541, Subpart G, Salary Requirements