Deductions from Pay
The federal law on deductions from pay contains few restrictions
when compared to the laws in many states. Under federal law, almost any deduction
is permitted, even if it reduces the employee's pay below the minimum wage
in some cases. Certain deductions may specifically reduce pay below the minimum.
However, there are a number of deductions that may not be made if they result
in pay that is less than the minimum wage. These rules apply only to nonexempt
employees who are covered by minimum wage requirements. In general, deductions
from pay should be made only where required by law or authorized in writing
by the employee.
Georgia law has few specific
provisions regulating payroll deductions. Employers must make deductions from
wages as required by law for such things as federal, state, or local income
tax withholding, Social Security contributions, and wage garnishments. Employers
and employees are free to make additional arrangements for deductions they
consider mutually acceptable, provided they comply with federal law related
to deductions from wages.