EMPLOYMENT

Can my employer deduct from my paycheck for mistakes or damage?

SHORT ANSWER

Often not, and rarely below minimum wage. Many states sharply limit deductions for cash-register shortages, breakage, or mistakes, sometimes requiring your written consent. Even where allowed, a deduction generally can’t drop your pay below minimum wage for the hours worked.

Docking pay for errors, shortages, or damaged goods is far more restricted than many employers act like it is. A number of states prohibit or tightly limit deductions for things like a cash-drawer shortfall, broken equipment, or a customer walkout, and some require your specific written authorization before any such deduction. On top of state rules, federal law provides a floor: a deduction generally cannot reduce your earnings below the minimum wage for the hours you worked, and it cannot cut into overtime pay. So a surprise deduction for a mistake is often improper.

What to do, in order

  1. Check your state’s rules on deductions for shortages, breakage, and mistakes — many limit them.
  2. Look for whether written consent is required before any such deduction.
  3. Verify the deduction didn’t drop your pay below minimum wage for hours worked.
  4. Ask for an itemized explanation of any deduction in writing.
  5. Dispute improper deductions and, if unresolved, contact your labor department.

Common questions

Can my employer make me pay for a register shortage?

Often not. Many states restrict or prohibit deductions for shortages, and even where allowed, your pay generally can’t drop below minimum wage.

Do they need my permission to deduct?

In many states, yes — deductions for mistakes or damage often require your written authorization, and some are barred entirely.

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Authoritative sources

Primary government sources. This page summarizes them in plain language; the linked pages are the authority.
This is general information, not legal, tax, or financial advice, and it doesn’t create a professional relationship. Rules have exceptions and change over time. For advice on your specific situation, consult a licensed professional.