The right of an employer to make deductions from employees' pay is limited by Maryland law. Deductions are permitted only if they are:
• Made in accordance with the provisions of law (such as Social Security).
• Ordered by a court (such as garnishments); There are more details.
• Expressly authorized in writing by the employee (such as union dues, charitable contributions, or certain wage assignments).
• Allowed by the Commissioner of Labor and Industry because the employee has received a benefit for which the deductions are a reimbursement (MD Labor and Employment Code Sec. 3-503 et seq.).
An assignment of wages is an agreement between an employee and his or her creditors in which the employee voluntarily assigns the creditor a portion of his or her wages for repayment of a debt. Wage assignments differ from garnishments in that garnishment is a procedure which takes place because the employee has not paid his or her debts voluntarily. In Maryland, wage assignments in retail installment sales contracts and for the repayment of loans under $6,000 are illegal. Other assignments of wages are legal if they cover only wages that will be earned up to six months from the date they are signed. In addition, wage assignments must be:
• Signed and acknowledged by the assignor/employee (and spouse if married) before a notary public for the county in which the assignor lives
• Entered in the county court docket by the court clerk on the same day
• Have an interest rate of no more than 6 percent
• Served on the assignor's employer within 3 days of the signing and acknowledgment (MD Commercial Law Code Sec. 15-301et seq.)
Employers must furnish employees with a statement ...