When an employee gets a paycheck, there are often deductions taken out of that paycheck, but did you know only certain deductions are legal? Under Oregon law deductions are only legal if they are required by law, for the employees benefit with a written authorization, authorized by the employee (so long as the employer does not receive the money), are part of a garnishment, or in some specific circumstances allow are for repaying a loan made to the employee. There are a few other legal deductions, but they are uncommon. This means that a deduction made for any other reason is likely an illegal pay deduction.
Legal deductions are few and far between. Really these deductions are about doing something for the employees benefit with the employees written authorization (like paying for health
Illegal deductions are all deductions not authorized by statute. Some commonly seen illegal deductions include deducting for till shortages or bad checks, deductions for the destruction of company property, deductions for theft of negligence, or deductions for uniforms or tools needed for the job. I’ve even heard of employers trying to deduct the cost of writing a paycheck for their employees. These are all very likely illegal deductions, and in the end act as a type of wage theft. Wage theft is when the employer doesn’t pay the employee all they are required to. Because such theft is illegal, it is likely the employee can seek repayment of those lost wages. There are, however, strict time limits so you may want to consult an attorney to find out what your options are.
In the end, deductions are part of an employees life. We see them with every paycheck. But not all deductions are legal. If there is money being deducted from your paycheck, and you aren’t sure if it is a legal deduction you should be aware there are time limits and you may want to consult with an attorney to evaluate your situation. If you would like your unique situation evaluated, please feel free to call the office and schedule your free consultation.