Vermont Deductions From Pay laws & compensation compliance analysis

Vermont Deductions From Pay: What you need to know

The only deductions that may be made from an employee's wages are those that are required or permitted by law. These include federal, state, and local taxes; Social Security withholding; and deductions authorized in writing by the employee for the benefit of the employee (e.g., premiums for group health insurance and contributions to a 401(k) or other benefit plan).
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Goods or services provided by the employer. An employer may, with prior written authorization, deduct payments for goods or services furnished to the employee, provided the employer has sufficient documentation to show the goods or services were actually received by the employee.
Cash register shortages and damages. The Vermont Department of Labor has stated that an employer may not deduct from wages for cash register shortages, bad checks or credit cards, missing property, or other damages.
Uniforms. An employer may not deduct from an employee's wages the cost of providing and maintaining uniforms. However, certain employees (such as those working for hotels, tourist establishments, and restaurants) may be required to purchase uniforms directly from a third party as long as no payment is made by the employee to the employer for the uniform.
Medical exams. An employer may not require an employee or applicant for employment to pay the cost of a medical exam as a condition of employment (VT Stat. Tit. 21 Sec. 301).
Assignment of future wages. An assignment of future wages is not valid if made to the employer from whom the wages are due, or to anyone on behalf of the employer (VT Stat. Tit. 21 Sec. 344).
Employers are required to furnish each employee with a written statement each pay period ...

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