Can your employer deduct from your paycheck?

I work at a spa and we have new owners. they are now offering a 100% money back guarantee if a customer doesn’t like their service they don’t have to pay. If we have said customer the money they would have spent on our service is now deducted from our paycheck to pay back our employer so

in turn they have a zero risk factor and do not have to reimburse the customer. Is this legal?

Asked on July 1, 2017 under Employment Labor Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, this is not legal: employers may not deduct money from employee paychecks without employee consent (e.g, as part of an agreement to pay back a loan from the employer) or as required by law (e.g. court-ordered wage garnishment). That's all: the employer may not otherwise deduct from employee paychecks. If your employer is illegally deducting, you can file a wage and hour complaint with the state department of labor. Your employer cannot off load the risk of their money-back guaranty onto employees, but rather must bear that risk itself.


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