Deductions from wages - Wisconsin

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.

The Wisconsin Statutes allow that an employee may voluntarily and without undue pressure authorize in writing deductions from his paycheck. In cases of loss or damage, the consent must be given in writing after the loss or damage occurs, but before the deduction is actually made. A “blanket” authorization given at the time of hire, for example would not be permitted.

An employer may not require employees to sign a statement giving the employer permission to deduct for shortages, mistakes, losses, etc., from the employees’ wages prior to the time the alleged loss or shortage occurred. This would include signatures prior to the time the wages from which the deduction is to be made were earned. An employer cannot deny an employee the right to disagree and utilize the department as the determining party or foreclose his right to subsequent review.

An endorsement of a payroll check by an employee is not considered written permission. An employee’s signature on a daily checkout sheet is probably not considered written permission. It depends upon the purpose and function of a daily checkout sheet. The statute contemplates that signing documents for a specific purpose may not be used to meet the employee authorization for deduction as a byproduct for the employer’s benefit. An employee’s signature on a time card showing the shortage deduction (or a check stub retained by the employer) is also probably not considered written permission.

An employer may not deduct from an employee’s wages to cover the cost of a medical exam required by the employer.

An employee can not be required to pay any portion of the employer’s required contributions to the unemployment compensation fund, nor may an employer make any deduction from an employee’s wages.

An employer must provide each employee with each paycheck a statement listing the number of hours worked, rate of pay, and amount and reason for each deduction, except for miscellaneous deductions authorized by the employee for personal reasons.

State

Contact

Wisconsin Department of Workforce Development

Regulations

Wisconsin Statutes Annotated
103.37. Certain requirements to obtaining employment prohibited. (medical exams)
103.455 Deductions for faulty workmanship, loss, theft or damage.
103.457 Listing deductions from wages.
https://roar-assets-auto.rbl.ms/documents/14521/103.pdf

108.11. Agreement to contribute by employees void
https://roar-assets-auto.rbl.ms/documents/14522/108.pdf

Wisconsin Administrative Code Dept. of Workforce Development Chapter 272 §272.10. Listing deductions from wages
www.legis.state.wi.us/rsb/code/dwd/dwd272.pdf

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