Can your employer deduct from your paycheck?

UPDATED: Sep 30, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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