Deductions from wages - Minnesota

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 Minnesota law, employers can not make any deduction from an employee’s wages without voluntary written authorization to do so, signed by the employee after the particular debt or loss occurs. Even with permission, no employer can make any deduction that would bring the employee’s gross wages below the minimum wage.

The Department of Labor and Industry policy regarding overpayment of wages is that the employer has the right to recover any overpayment caused by a bookkeeping error; therefore, an employer must be reimbursed for overpayment of wages.

It is unlawful for any employer to require any employee or applicant to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment, except certificates of attending physicians in connection with the administration of an employee’s pension and disability benefit plan or citizenship papers or birth records.

State

Contact

Minnesota Department of Labor and Industry

Regulations

Minnesota Rules 5200.0090 Deductions

Minnesota Statute 181.06 Assignment Of Wages; Payroll Deductions

Minnesota Statute 181.61 Medical Examination; Records, Costs

Minnesota Statute 181.79 Wages Deductions For Faulty Workmanship, Loss, Theft, Or Damage

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