Oklahoma law does not prohibit an employer from lending to or advancing pay to an employee or from deducting repayment installments from the employee's wages. Loan and repayment arrangements should be documented in writing including the amount and term of the loan and the amount of deduction from each paycheck. The documentation should also state that if an employee terminates or is terminated, the unpaid balance of the loan will be deducted from the employee's final paycheck (OK Stat. Tit. 40 Sec. 165.2). If, at termination, an employee disputes a loan or deduction from wages, the employer must give written notice to the employee of the amount of wages the employer agrees is due and pay those wages. The employee may file a claim with the Department of Labor. The burden is on the employer to prove that there was a loan and the terms of the repayment arrangement (OK Stat. Tit. 40 Sec. 165.4).
Like any other payroll deduction, each loan payment deduction must be itemized on the worker's pay statement.