Alabama Deductions From Pay laws & compensation compliance analysis

Alabama Deductions From Pay: What you need to know

Alabama law gives employers and employees considerable discretion to arrange for deductions to be made from employees' pay. However, there are limited circumstances in which deductions may be restricted by law.
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Employers may not require an employee or job applicant to pay any dues, fees, or other charges to a labor union or labor organization, and any deduction made under such a requirement is prohibited. However, employees may voluntarily authorize deductions for such purposes (AL Code Sec. 25-7-34).
An assignment of wages is an agreement between an employee and his or her creditor to have money deducted from the employee's wages and paid to the creditor. Under Alabama law, agreements to assign future wages to satisfy consumer debts are void (AL Code Sec. 8-5-21).

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