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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.
An employer may only withhold an employee’s wages when the employer is required by state or federal law, the employer has the employee’s prior written authorization, or there is a reasonable good faith dispute as to the amount of wages due, including the amount of any counterclaim, reimbursement, recoupment or set-off asserted by the employer.
For deductions after October 1, 2011, a public or private employer may not deduct any payment from an employee's paycheck for political purposes unless the employee annually provides written or electronic authorization to the employer for the deduction. If a deduction is made for multiple purposes after October 1, 2011, the employer shall obtain a statement from each entity to which the deductions are paid that indicates the payment is for political purposes or a statement that indicates the maximum percentage of the payment that is used for political purposes. The employer shall not deduct any payment beyond that specified for nonpolitical purposes without the annual written or electronic permission of the employee. For the purposes of this provision, “political purposes” means supporting or opposing any candidate for public office, political party, referendum, initiative, political issue advocacy, political action committee or other similar group.
This restriction does not apply to any of the following:
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Industrial Commission of Arizona
Regulations
Ariz. Rev. Stat §23-352. Withholding of wages
No employer may withhold or divert any portion of an employee's wages unless one of the following applies:
Ariz. Rev. Stat §23-361.02. Paycheck deductions; authorization; civil penalty; definition
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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