Private employers. Under Minnesota law, employers may make payroll deductions for certain items pursuant to a written, signed contract between the employer and employee that authorizes the deduction (MN Stat. Sec. 181.06). In addition, an employer may not make deductions from an employee's wages to repay a debt, unless the employee voluntarily authorizes the deduction in writing after the claimed indebtedness has arisen or the employee is found liable for the amount in a court of competent jurisdiction (MN Stat. Sec. 181.79).
An authorization for a deduction from wages must include the amount to be deducted each pay period. A deduction may not be larger than the amount established by law as subject to garnishment or execution on wages. Before making a purchase or loan from the employer, an employee may voluntarily authorize in writing that the cost of the purchase or amount of the loan will be deducted from the employee's wages at regular intervals or upon termination of employment.
An employer that violates the requirements for deductions from pay may be sued by the employee for twice the amount of the deduction (MN Stat. Sec. 181.79).
State employers. State employers may deduct the amount of a debt owed from wages due or earned by a state employee, subject to the state's garnishment limitations. However, if an employee and employer have a written payment plan for a specific debt, the employer may not simply deduct that amount from the employee's pay but must follow the payment plan provisions (MN Stat. Sec. 16D.16).
For additional information, contact:
Minnesota Department of Labor and Industry
443 Lafayette Road North
St. Paul, MN 55155-4307