Can my employer deduct from my paycheck for uniforms, shortages or walkouts?

Can my employer deduct from my paycheck for a uniform, a short register, a broken glass or a table that walked out? Sometimes, within limits, and in many states not at all. Federal law sets a floor: these deductions can never take you below minimum wage. Many states go further and ban them outright.

The federal free-and-clear rule

Federal rules (29 CFR 531.35) say minimum wage has to be paid "free and clear". Your employer cannot hand you minimum wage and then take part of it back for costs that are really its own.

Uniforms, register shortages, breakage, walkouts and card processing fees all count as costs that mainly benefit the employer. So under federal law, a deduction for any of them is allowed only to the extent your pay for the workweek stays at or above minimum wage. It also cannot cut into overtime pay you are owed.

A few related points:

• Paying it back in cash counts the same. If you are told to hand over cash to cover a shortage instead of having it deducted, the same limits apply.
• Your tips are off limits. Your employer cannot take your tips to cover any of these costs. Tips belong to you, apart from a valid tip pool. See the tip pool guide.
• Some deductions are always fine: taxes, court-ordered garnishments, and things you chose for your own benefit, like health insurance or a retirement plan.

How this works with a tipped cash wage

If your employer pays you a tipped cash wage and takes a tip credit, it is already counting your tips toward minimum wage. The cash wage is the floor. A deduction that takes your cash pay below that floor cuts into minimum wage.

At $2.13 an hour there is no room at all. Say you work 30 hours at $2.13, which is $63.90, and $25 comes out for a uniform. That leaves $38.90, about $1.30 an hour. The whole $25 cuts into minimum wage.

Hourly workers paid above minimum wage have some room under federal law, though their state may still ban the deduction. Say you are paid $9.00 an hour in a state that follows the federal $7.25, and you work 40 hours. The gap is $1.75 an hour, or $70 for the week. A $50 uniform deduction stays within that. A $100 deduction goes $30 past it, and that $30 is owed back to you.

Common restaurant deductions, one by one

Uniforms

Under federal law, a required uniform is the employer's cost, and charging you for it cannot take you below minimum wage or into your overtime. Many states are stricter. In California, New York, New Jersey, Nevada and several others, a required uniform is on the employer. New York also requires extra pay for keeping a required uniform clean when the employer does not launder it. Minnesota allows a uniform deduction but caps it at $50, and it has to be paid back when you leave.

Register shortages

A cash drawer that comes up short is one of the most common deductions, and one of the most often banned. Many states forbid it or allow it only in narrow cases. Colorado allows it only for a theft reported to the police. Alaska requires your written admission of personally taking that specific amount. Wisconsin generally needs a written authorization you sign after the loss, not a blanket form from your first day.

Breakage

Dropped plates, broken glasses and damaged equipment are a normal cost of running a restaurant. Most of the states that ban shortage deductions ban breakage deductions too. California allows one only if the employer can show a dishonest or willful act, or gross negligence.

Walkouts and dine-and-dash

When a customer leaves without paying, the loss is the restaurant's. Federal law limits a walkout deduction to the amount above minimum wage, so a server on a $2.13 cash wage cannot be charged for it at all. Colorado says unpaid customer bills cannot be deducted even if you agree to it.

Credit card fees on tips

Federally, the employer may take only the processing fee on the tip itself, never the fee on the whole bill, and never below minimum wage. California, Massachusetts, Minnesota and Pennsylvania do not allow it at all. In Colorado, taking it cancels the employer's tip credit. See credit card tip fee.

Quick reference

How state deduction rules differ

TruWage's state rules sort into three broad patterns for shortages, breakage and walkouts:

• Banned, or allowed only in narrow cases. About 20 states, including California, New York, Massachusetts, Pennsylvania, Illinois, Washington and Oregon. Where exceptions exist, they tend to require something specific, like a written authorization signed after the loss or proof of dishonesty.
• Allowed with your written authorization, and never below minimum wage. Michigan, North Carolina, Texas and Virginia are examples. In these states a deduction you never agreed to in writing is not allowed even if it leaves you above minimum wage.
• Federal rule only. Some states, like Georgia and Florida, have no state deduction law, so the federal minimum wage floor is the main limit.

A form you signed at hire does not always count. Several states, including Illinois, Minnesota and Wisconsin, require consent given after the specific loss or at the time of the deduction, not a blanket agreement in your hiring paperwork. Your state page has the details where you work.

Deductions from your last paycheck

Some employers hold back pay until you return a uniform, keys or a tablet. The rules vary. Illinois does not allow an employer to withhold pay while waiting for uniforms or equipment to come back. Colorado does allow a deduction for property you did not return when you left. Either way, the federal minimum wage floor still applies to your final week.

If your last check is short, compare it with your hours the same way you would any other stub. A wage claim can cover a final paycheck too.

What to do about a deduction

1. Find the line. Deductions can have vague names like "misc", "adjustment" or "other". The pay stub guide shows where they usually sit.
2. Ask what it is for. Your manager or payroll should be able to tell you what each deduction covers.
3. Check what you signed. If you were asked to sign a deduction form, keep a copy and note when you signed it.
4. Run the numbers. The paycheck checker compares each deduction with your state's rules and flags it when it is banned or takes you below the floor.
5. Ask in writing. The letter template puts the amount and the rule in a short, polite note.
6. File a wage claim if it is not fixed. Your state labor agency or the U.S. Department of Labor takes wage claims for free, and you do not need a lawyer. See next steps if you are underpaid.

TruWage is a calculator, not legal advice.