Disclaimer: This document and any discussions set forth herein are for informational purposes only, and should not be construed as legal advice, which has to be addressed to particular facts and circumstances involved in any given situation. Review or use of the document and any discussions does not create an attorney-client relationship with the author or publisher. To the extent that this document may contain suggested provisions, they will require modification to suit a particular transaction, jurisdiction or situation.
Washington Deductions from Wages:
Overview
Employers can deduct amounts from employee wages as authorized by federal or state law; amounts authorized by employees in writing; and generally amounts for medical care or services pursuant to any rule or regulation. Employers cannot require or accept a rebate of wages from employees.
Coverage
All employers are covered. This summary is restricted to coverage of private employers.
Permitted Deductions
Employers can deduct the following from employee wages:
- amounts authorized by federal or state law (e.g. income tax);
- amounts authorized by employees in writing; and
- amounts for medical care or services pursuant to any rule or regulation, provided deductions are openly and clearly recorded in employer books and records.
As long as employers do not gain any financial profit or benefit from these deductions, they can deduct the following from employee wages even if wages are reduced below the state minimum wage:
- amounts required by state or federal law;
- amounts for medical, surgical, or hospital care or service; or
- amounts to satisfy a court order, judgment, wage attachment, trustee process, bankruptcy proceeding, or payroll deduction notice for child support payments.
Employers cannot withhold any political contributions from employee wages without having an employee’s written authorization on file. Employees must be allowed to revoke authorization at any time and be notified in writing by employers at least annually of the continuing diversion of funds. Employers must keep copies of these notices for at least five years. Employee revocation of withholding is effective on the date employers receive the notification unless employees specify a later date.
Overpayments
Employers can recover overpayments from employee paychecks if the overpayments were infrequent and inadvertent. Employers have 90 days from the initial overpayment to detect and implement a plan to collect overpayments. If overpayments are not detected within 90 days, employers cannot adjust current or future wages to recoup overpayments.
Prohibited Deductions
Employers cannot require or accept a rebate of wages from employees.
Employers cannot deduct the cost of uniforms from wages. Employers also cannot require deposits from employees for uniforms. Uniforms include:
- clothing that clearly identifies workers as employees of a specific employer,
- clothing specifically marked with an employer’s logo,
- unique clothing representing a historical time period or an ethnic tradition, or
- formal attire.
If required clothing is of a common color and conforms to a general dress code or style, employers are not responsible for the cost. Common colors include:
- white, tan, and blue for tops; and
- tan, black, blue, and gray for pants.
If the required clothing is any color other than those listed above, employers must provide or compensate employees for the clothing. Employers that change the color of required clothing within two years after original requirements were instituted must compensate or provide new clothing to affected employees. Employers can require two sets of clothing of a common color and which conforms to a general dress code in order to accommodate changing seasons.
Wage Assignments
Assignment of future wages used to secure a loan of less than $300 is valid only if the assignment is accepted in writing by employers and the assignment and acceptance are filed and recorded with the proper county auditor. Written consent of employees’ spouses also is required. Wage assignment orders remain in effect for one year after employees leave employment or after their employers no longer holds earnings owed to them. If employees return to employment during that year, their employers must resume withholding in accordance with the order.
Recordkeeping and Enforcement
Pay statements must include all wage deductions. Employers must identify and record all wage deductions openly and clearly in employee payroll records.
Administration/Enforcement
The Washington Department of Labor and Industries enforces the law.
Penalties/Remedies
Employers that violate any of the wage deduction provisions, willfully enter false statements of wages paid or deductions made, or require or accept a rebate of wages from employees are guilty of a misdemeanor, punishable by a fine of up to $1,000, or imprisonment for up to 90 days, or both.
If the Department of Labor and Industries determines employers have violated the wage deduction law, the department can order employers to pay employees all wages owed and interest of one percent per month. If the department determines that violations were willful, the department also can fine employers $500 or an amount equal to 10 percent of the total amount of unpaid wages, whichever is greater. The maximum fine for a willful violation is $20,000. The fine is waived if employers pay employees all wages owed, including interest, within 10 business days of receipt of a citation and notice of assessment from the department.
Employers can appeal department rulings, including citations, notices of assessment, or determinations of compliance, by filing an appeal notice within 30 days. An employee who has filed a wage complaint with the department can elect to terminate the department’s administrative action. Any citations or assessment notices already issued to the employer because of the action are void and any related findings by the department or any payment by the employer of wages, including interest, cannot be used in any judicial or administrative proceeding.
If employers default on payments of any wages owed, including interest, or any civil penalties after final orders are issued, the director can file a warrant in the amount of payment plus any filing fees. The amount of the warrant becomes a lien on the employer’s property and garnishment orders can be issued.
Idaho Deductions from Wages:
Overview
Employers may deduct amounts from employee wages as authorized by federal or state law and as authorized by employees in writing.
Coverage
All employers are covered. This summary is restricted to coverage of private employers.
Permitted Deductions
Employers may deduct the following from employee wages:
- amounts authorized by federal or state law (e.g. income tax); and
- amounts authorized in writing by employees for lawful deductions.
Prohibited Deductions
Employers may not withhold any portion of wages unless required by state or federal law or unless an employee has provided written authorization for such a deduction.
Wage Assignments
Assignments of unpaid earnings are prohibited for payment of or as security for payment of a debit of a consumer credit transaction. However, employees can authorize wage assignments if the authorization is revocable; they are given a complete copy of the authorization at the time they sign it; and the authorization contains notice of the right to revoke authorization.
Recordkeeping Requirements
Employers must furnish each employee with a statement of deductions made from the employee’s wages for each pay period that deductions are made.
Administration/Enforcement
The Idaho Department of Labor enforces the law.
Penalties/Remedies
Employers that fail to keep the required records are guilty of a misdemeanor punishable by either a fine of not more than $300, imprisonment of not more than six months, or both.
Claims to collect unpaid wages, penalties, or interest may be made to the Labor Department or in district court and must begin with in 12 months from when the accrual of the cause of action began. Previously, claims had to begin within six months from when the accrual of the cause of action began.
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