Improper Pay Deductions and Unreimbursed Expenses

Defend Your Paycheck with USA Employment Lawyers

In the complex world of wage and hour laws, improper pay deductions and unreimbursed expenses can significantly impact an employee’s income and financial stability. Employers may violate federal or state labor laws by making unauthorized deductions from an employee’s paycheck or failing to cover certain work-related expenses. At USA Employment Lawyers, we help workers understand their rights and fight back against these illegal practices.

Understanding Improper Pay Deductions

Federal and state laws provide clear guidelines on what employers can and cannot deduct from an employee’s paycheck. Generally, deductions that benefit the employer, rather than the employee, are restricted or even prohibited under these laws. Some common improper deductions include:

• Uniform Costs: Under federal law, employers are not allowed to deduct the cost of required uniforms if doing so would reduce an employee’s pay below the minimum wage or impact overtime pay. If an employer mandates a uniform, they are typically responsible for covering the associated costs.
• Shortages and Damages: Employers cannot deduct from wages to cover cash register shortages, unpaid customer bills, or lost or broken equipment if these deductions reduce an employee’s pay below the legal minimum or interfere with overtime compensation. These types of deductions are seen as primarily for the employer’s benefit and, therefore, are illegal in many cases.
• Other Employer Costs: Any other deductions that benefit the employer, rather than the employee, may also be restricted, especially when they reduce pay below minimum wage or overtime requirements.

Unreimbursed Expenses

In addition to improper deductions, some employers violate the law by failing to reimburse employees for work-related expenses. While not all states require employers to cover expenses, certain states do have specific laws mandating reimbursement for costs incurred by employees to perform their jobs. Common examples include:

• Mileage and Travel Costs: In many roles, employees are required to travel to perform their job functions. In some states, employers must reimburse employees for mileage or other travel expenses incurred during business activities.
• Cell Phone and Internet Usage: Employees who use their personal cell phones or internet for work purposes may be entitled to reimbursement, depending on state laws.
• Supplies and Equipment: In some situations, employees are required to use or purchase equipment to perform their duties. Certain state laws mandate that employers cover these costs to prevent employees from incurring out-of-pocket expenses that primarily benefit the employer.

If you believe you have been subjected to improper deductions or have incurred unreimbursed expenses that your employer refuses to cover, you may have a claim. At USA Employment Lawyers, we have extensive experience handling wage and hour disputes, helping employees secure the compensation they are entitled to under federal and state laws. We are committed to standing up for workers' rights and ensuring employers meet their legal obligations.

Contact us for a consultation to discuss your situation and learn more about how we can help. Our dedicated team is here to answer your questions and provide guidance every step of the way. Call (800) 483-0998 today!