Deductions from Paycheck Must be Authorized

Posted on May 27, 2010 by Tom Crane

A frequent issue arises concerning the right of an employer to deduct debts from an employee's paycheck.  Texas Workforce Commission recognizes three occasions when an employer may make such deductions: 1) in response to an order from a competent court, such as for child support; 2) state or federally mandated withholdings; and 3) when authorized in writing by the employee.  See TWC info.  

So, for example, when the employee owes payments on a loan to the employer, the employer may not deduct those payments from the paycheck.  Even if the employer has a signed loan agreement, the employer may not deduct those payments without written authorization from the employee.  

But, the other shoe is that TWC will probably do nothing more than send letters to the employer finding them at fault.  I have personally never heard of TWC taking stronger steps than sending letters to the miscreant employer. 

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Deductions from a Paycheck

Posted on May 26, 2009 by Tom Crane

 Many callers want to know about miscellaneous deductions from a paycheck.  Auto repair shops deduct for lost tools, long haul truck companies deduct for uniforms, everyone deducts for something.  Often, these employers deduct the wrong things in the wrong way.  Under the Texas Payday Statute, an employer can only deduct only what the law allows (such as income tax deductions) and what the employee agrees in writing.  

Of course, the penalty is weak: $1,000 fine or the amount of the deduction, whichever is less.  But, still, the law is clear.  Report any violations to the Texas Workforce Commission.  TWC may not do much.  But, even if all they do is send a letter finding the employer at fault, that can be helpful. 

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