Tennessee Deductions from Pay laws & HR compliance analysis

Tennessee Deductions from Pay: What you need to know

Tennessee law has few specific provisions regulating payroll deductions. Employers must make deductions from wages as required by law for such things as federal, state, or local income tax withholding; Social Security contributions; and wage garnishments. Employers and employees are free to make additional arrangements for deductions they consider mutually acceptable, provided they comply with federal law related to deductions from wages.
Practice tip. Even though Tennessee has few laws regulating payroll deductions, employers should have written authorization from employees before making deductions from wages for anything other than those deductions required by law.
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An employer is not required to honor an assignment of future wages unless the employer agrees to the assignment in writing at the time it is entered into or unless the assignment is ordered by a court to enforce a child support order (TN Stat. Sec. 50-2-105).
Employers may charge a specified fee per month if ordered to pay an income assignment on behalf of an employee. Also, a certain fee to the clerk of the court is allowed for child support cases(TN Stat. Sec. 36-5-501).
Tennessee’s Wage Protection Act (TN Stat. Sec. 50-2-101 et seq.) states that an employer may offset an employee's wages due for an amount the employee owes the employer if:
● The employer enters into an agreement with an employee to advance the employee wages before the date the wages are owed, agrees to lend the employee money, or permits the employee to charge personal items on the business or corporate credit card issued to the employee;
● The employee signs a written agreement before any actions occurring, ...

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Tennessee Deductions from Pay Resources

Type Title
Forms Training Expense Agreement
Policies Payroll Deductions (Standard)
See all Deductions from Pay Resources