Deductions from wages - Tennessee

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.

Tennessee law prohibits an employer from penalizing an employee or deducting any sum of money as a penalty or fine from the employee’s wages.

An employer cannot make any deductions from a paycheck (i.e., for uniforms, equipment, company loans, shortages and negligence, etc.) without the employee’s consent to the deductions. An employer cannot hold a paycheck for any reason.

An employee’s rate of pay can be reduced with or without approval as long as the employer tells the employee BEFORE any work is done. The employee cannot work without first knowing the amount of wages to be paid.

State

Contact

Tennessee Department of Labor and Workforce Development

Regulations

Tennessee Code, Title 50, Chapter 2, Part 1 (§§50-2-101 to 50-2-108)

http://www.lexisnexis.com/hottopics/michie/

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