Deductions from wages - Hawaii

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.

Hawaii law allows wage deductions for state and federal withholding taxes; amounts specified by court orders; and amounts authorized in writing. An employer may not collect, deduct, or obtain authorization to deduct for:

• fines;
• cash shortage in a common money till, cash box or register used by two or more persons, or under an employee’s sole control if the employee is not given an opportunity to account for all moneys received at the start of a shift and all moneys turned in at the end of a shift;
• fines, penalties or replacement cost for breakage;
• losses due to an employee’s acceptance of checks which are later dishonored if the employer has authorized the employee to accept checks;
• losses due to faulty workmanship, lost or stolen property, damage to property, default of customer credit or nonpayment for goods or services received by customers, unless such losses are due to the employee’s willful or intentional disregard of the employer’s interest;
• medical or physical examination or medical report expenses which accrue due to services rendered to an employee or prospective employee, where such examination or report is requested or required by the employer or required by any law.

An adjustment in wages for advances or correction of computation errors from previous payrolls is not considered a deduction.

State

Contact

Hawaii Department of Labor and Industrial Relations

Regulations

Hawaii Revised Statutes §388-6 Withholding of wages.

Hawaii Administrative Rule Title 12, Chapter 21, §12-21-4 Withholding of wages.

Federal

Contact

Wage and Hour Division

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