Is written consent required to make wage deductions for damages?

Q           Our expenses have increased because of damaged company property that we’ve had to repair or replace, so we’d like to implement a policy of making deductions from employees’ paychecks for the damages. Do we need to obtain written consent from employees, or would the deductions still be prohibited?

Although it’s advisable to obtain written consent from employees before making deductions, you still need to comply with applicable laws. In Mississippi, there’s no law addressing deductions from employees’ pay for damage to company property, but the federal Fair Labor Standards Act includes limitations on deductions from employees’ pay.

Specifically, for nonexempt employees (i.e., employees entitled to overtime pay), you may not make deductions in an amount that reduces the employees’ pay below minimum wage in a given workweek. You can, however, make smaller deductions over a period of time in line with this prohibition until the full amount is recouped.