Improper deductions from paychecks

A common way that employers steal wages from their employees is through a practice of making improper deductions from the employees’ paycheck.

In Wisconsin, “No employer may make any deduction from the wages due or earned by any employee…for defective or faulty workmanship, lost or stolen property or damage to property, unless the employee authorizes the employer in writing to make that deduction.” Wis. Stat. § 103.455. A common example of an employer violating this policy would be the cashier who, without authorization, has a shortage from her drawer deducted from her pay. If an employer makes such an improper deduction in violation of this statute, the employer shall be liable for double damages in a civil action brought by the employee. See id.

It is crucial to note that not all deductions will be deemed improper. The language of the statute clearly provides that an employee can authorize a deduction; however, if the authorization is not in writing it is not valid. It is also clearly established by case law that authorization by the employee for the deduction is only valid if it is given after the loss and before the deduction. See Donovan v. Schlesner, 72 Wis. 2d 74, 240 N.W.2d 135 (1976).

Although Wis. Admin. Code § DWD 272.10 requires an employer list all deductions on the employees pay stub, along with the number of hours worked and the employees rate of pay, an employer does not have to list miscellaneous deductions.