Deductions from wages - New Jersey

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 New Jersey law, employers may not withhold or divert any portion of an employee's wages unless:

(1) The employer is required or empowered to do so by New Jersey or United States law; or

(2) The amounts withheld or diverted are for contributions or payments authorized in writing by employees.

Employers are not allowed to deduct for shortages or breakage, failure to return company property, the cost of drug testing (except for security guards), the purchase of or maintenance of a uniform, or the cost of a license or certificate that is required to perform the job. Nothing can be deducted from an employee’s wages other than those items required and/or specifically permitted by federal law and/or state law.

For details, see the state FAQ page at http://lwd.dol.state.nj.us/labor/wagehour/content/wage_and_hour_compliance_faqs.html#q32

State

Contact

New Jersey Department of Labor and Workforce Development

Regulations

N.J.A.C. 12:55 Subchapter 2, §12:55-2.1 Payroll deductions; general

http://lwd.dol.state.nj.us/labor/wagehour/lawregs/selected_nj_state_labor_law.html#5521

New Jersey Statute Title 34, §34:11-4.4. Withholding from wages

http://lwd.dol.state.nj.us/labor/wagehour/lawregs/selected_nj_state_labor_law.html#1144

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