In Massachusetts, specific regulations govern what employers can and cannot deduct from an employee’s paycheck. Violations of these laws can lead to significant legal penalties for employers, and employees may be entitled to compensation if illegal deductions are made.
Legal Wage Deductions in Massachusetts
Under both Massachusetts law and federal law, certain wage deductions are legal as long as they meet specific criteria. Generally, employers can deduct from an employee’s wages for:
- Taxes: Employers are required by law to withhold federal and state taxes, including income taxes, Social Security, and Medicare contributions.
- Employee Benefits: Employers can deduct wages for voluntary benefits like health insurance premiums, retirement contributions, or other employee-sponsored programs, as long as the employee has consented to these deductions in writing.
- Court-Ordered Deductions: Deductions for obligations such as child support, alimony, or garnishments ordered by a court are legal and mandatory under state and federal law.
In these cases, deductions are standard and typically benefit the employee or fulfill legal obligations. However, many employers attempt to deduct additional costs, some of which may violate Massachusetts wage laws.
Illegal Wage Deductions Under Massachusetts Law
Massachusetts law is particularly strict when it comes to protecting employees from improper wage deductions. Under the Massachusetts Wage Act, it is illegal for employers to make deductions from an employee’s wages for business-related expenses without the employee’s written consent, and even then, certain deductions may still be prohibited.
Common illegal deductions in Massachusetts include:
- Uniform Costs: Employers in Massachusetts cannot require employees to pay for the cost of uniforms if those uniforms are specific to the business and are not considered “ordinary clothing.” For example, if an employer requires a branded uniform or specialized clothing that an employee cannot reasonably wear outside of work, the employer must bear the cost. Requiring employees to pay for or reimburse the employer for uniforms is a violation of state wage laws.
- Tools and Equipment: If an employee must use specific tools or equipment to perform their job, the employer must provide those tools at no cost to the employee. Employers cannot deduct the cost of tools, safety gear, or equipment from an employee’s wages, even if the tools are used exclusively by the employee.
- Business Expenses: Massachusetts law prohibits employers from shifting the costs of doing business onto their employees. This includes deductions for breakages, shortages in cash drawers, or losses due to customer theft. These are considered normal business risks that employers must absorb and cannot be passed on to employees through wage deductions.
- Training Costs: In some cases, employers may attempt to deduct wages for mandatory training or certification costs required for the job. Unless the employee agrees in writing, this practice is illegal. Even with written consent, Massachusetts law may limit an employer’s ability to impose such costs on an employee.
Example of Illegal Wage Deduction
Consider the example of a restaurant employee who is required to wear a specific branded uniform. If the employer charges the employee for the uniform or deducts the cost from their paycheck, this may violate Massachusetts law. Similarly, if a mechanic is required to use tools unique to the employer’s shop, the employer cannot deduct the cost of those tools from the mechanic’s wages.
In both cases, employees would have the right to seek recovery for any wages lost due to these illegal deductions, and employers may face penalties for violating wage laws.
Federal Wage Laws and Additional Protections
In addition to Massachusetts state laws, the Fair Labor Standards Act (FLSA) also governs wage deductions at the federal level. The FLSA prohibits deductions that reduce an employee’s wages below the federal minimum wage. This is particularly important in cases where an employer attempts to pass on the cost of uniforms, tools, or other business expenses.
For example, if an employee is earning the federal minimum wage and the employer makes a deduction for uniforms or other expenses, that deduction could violate the FLSA if it brings the employee’s pay below the federal minimum wage threshold.
Remedies for Illegal Deductions
Employees who believe their wages have been improperly deducted have the right to take legal action to recover lost wages. Under the Massachusetts Wage Act, employees can file a claim with the Massachusetts Attorney General’s office or pursue a private lawsuit against their employer. Employers who violate wage laws may be required to pay back wages, plus additional penalties, which could include triple damages and attorney’s fees.
If you believe that your employer has made illegal deductions from your wages, it is important to act quickly to protect your rights. An experienced employment attorney can help you understand your legal options and pursue compensation for any lost wages. Contact our Massachusetts employment attorney today to discuss your case and ensure that your rights are fully protected under state and federal law.
