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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 Virginia law, an employer can not withhold from an employee’s wages except for payroll, wage, or withholding taxes, or in accordance with law, with the signed written authorization of the employee. Even with written permission, employees cannot be required to forfeit their wages for shortages, errors, damages, etc. The employer must provide a written statement of the gross wages earned during any pay period and the amount and purpose of any deductions taken upon the employee’s request.
A limited deduction is allowed for the cost of meals and lodging customarily furnished by the employer and used by the employee.
It is unlawful to take a deduction from an employee’s wages to pay for the cost of a medical exam or provide medical records required by the employer. An employer can not take a deduction from the employee’s wages to finance any portion of the employer’s required contribution to the unemployment compensation fund.
Effective July 1, 2020, employers are required to report on employees’ wage statements the number of hours worked during the pay period if the employee is paid on the basis of either the number of hours worked or a salary that is less than the standard salary level adopted by the federal Fair Labor Standards Act (FLSA).
The new law also mandates that employers provide enough information on employees’ wage statements so they can easily calculate their gross and net pay.
Employers don’t need to report exempt employees’ hours if they are at or above the salary levels of what the FLSA requires.
State
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Virginia Department of Labor and Industry
Regulations
Code of Virginia Title 40.1 Chapter 3 §40.1-29 - Time and medium of payment; withholding wages; written statement of earnings; agreement for forfeiture of wages; proceedings to enforce compliance; penalties
Code of Virginia Title 40.1 Chapter 3 §40.1-28.9 - Definition of terms
Code of Virginia Title 40.1 Chapter 3 §40.1-28 - Unlawful to require payment for medical examination as condition of employment
Code of Virginia Title 60.2 Chapter 1 §60.2-107 - Waiver of rights void
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