Get The Help You Need 100% Confidential
${site.data.firmName}${SEMFirmNameAlt}
FREE Initial Phone Consultation Call
(317) 955-9500

When an employer can make deductions from a paycheck

Workers in Indiana may want to find out when an employer is legally permitted to make deductions from a paycheck. There are some circumstances when an employer can make a deduction, but the employer must let the employee know about the deduction ahead of time. An agreement about the deduction must also be made in writing, and the agreement must be signed by both he employee and the employer.

Many employees are required to wear uniforms at their job, and employers are not permitted to deduct the cost of mandatory uniforms from paychecks. If the uniform is optional, the cost of the uniform can be deducted if the employee requests it. An employer is also allowed to deduct money from a paycheck if an employee was previously overpaid. Deductions for things like premiums on an insurance policy, labor union dues and stock purchases are also allowed with the employee's written permission.

Employers are not permitted to fine employees by making deductions from their paycheck. However, an employer may seek repayment for property damage, loans made to an employee or goods and services given to an employee. If an employee fails to pay off these kinds of debts to their employer, the employer may file a lawsuit against the employee or fire them.

There are cases where an employer that disregards legal standards might make unlawful deductions from an employee's paycheck. An employee who has been paid less than they were owed might want to speak with an attorney who has experience in employment law matters about the process involved in filing an unpaid wage claim.

Source: Indiana Department of Labor, "Wage & Hour FAQs," Accessed on Jan. 9,

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need Help?

Let us know today. Our experienced attorneys want to help you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

John H. Haskin & Associates, LLC
255 North Alabama Street
Suite 200
Indianapolis, IN 46204

Phone: 317-426-6995
Fax: 317-955-2570
Indianapolis Law Office Map

  • Mon-Fri
  • 8:00 AM - 5:00 PM
  • Sat-Sun
  • Closed
Review Us