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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.
Under Kansas law, an employer may not withhold, deduct, or divert any portion of an employee's wages unless:
- The employer is required or empowered to do so by state or federal law;
- The deductions are for medical, surgical, or hospital care or service, without financial benefit to the employer, and are openly, clearly and in due course recorded in the employer's books;
- The employer has a signed authorization by the employee for deductions for a lawful purpose accruing to the benefit of the employee; or
- The deductions are for contributions attributable to automatic enrollment in a retirement plan.
Despite these restrictions, an employer may obtain written authorization to make deductions for the following reasons:
- To allow the employee to repay a loan or advance which the employer made to the employee during the course of and within the scope of employment;
- To allow for recovery of payroll overpayment; and
- To compensate the employer for the replacement cost or unpaid balance of the cost of the employer's merchandise or uniforms purchased by the employee.
In addition, upon providing a written notice and explanation, an employer may withhold, deduct, or divert a portion of an employee's final wages for the following purposes:
- To recover the employer's property provided to the employee in the course of the employer's business including, but not limited to, tools of the trade or profession, personal safety equipment, computers, electronic devices, mobile phones, proprietary information such as client or customer lists and intellectual property, security information, keys or access cards or materials until such time as such property is returned by the employee to the employer. Upon return of the employer's property, the employer shall relinquish the wages withheld to the employee;
- To allow an employee to repay a loan or advance which the employer made to the employee during the course of and within the scope of employment;
- To allow for the recovery of payroll overpayment; or
- To compensate the employer for the replacement cost or unpaid balance of the cost of the employer's merchandise, uniforms, company property, equipment, tools of the trade or other materials intentionally purchased by the employee.
A deduction may not reduce an employee's pay to less than minimum wage, however.
Federal
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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