An employer can legally deduct wages for the following, if authorized by law or the employee:
• taxes or garnishments (ex. social security, child support)
• union dues authorized by a collective bargaining agreement
• health insurance premiums
An employer cannot legally deduct wages (or tips) for the following:
• damages to employer property (ex. broken dishes, dropped food)
• register shortages
• accepting bad checks from customers
• walk-out customers
• uniforms, name tags, aprons, or tools required for the job
• laundry or cleaning of uniforms
• breakage or loss of tools, equipment or uniforms
If an employer deducts any amount from an employee’s pay, the employer must return that amount and pay the employee a penalty for each wrongful deduction. The penalty is equal to the amount of the deduction, or $200, whichever is greater.
The information and more is available by visiting these website and pages: BOLI, ORS 652.610(3), OAR 839-020-0020
Credit Card
Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, then the employer may pay the employee the tip, less that percentage (and only that percentage). The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.
For more information, see the U.S. Department of Labor’s Fact Sheet on the Fair Labor Standards Act (FLSA): U.S. Department of Labor
