Missouri Loans laws & HR compliance analysis

Missouri Loans: What you need to know

There are no provisions in Missouri law that prohibit the deduction from an employee's wages of payments on an advance or loan from the employer. One Missouri court has ruled that an employer may deduct the total balance of a loan owed by a terminating employee from the employee's final paycheck, without penalty (Solter v. P.M. Place Stores Co., Inc., 748 SW 2d 919, MO Ct. of Appeals (1988)).
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To facilitate repayment of loans out of an employee's paycheck, the employee should be required to authorize such a deduction in writing.

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