Which statement accurately describes when an employer may withhold payment from an employee?

Which statement accurately describes when an employer may withhold payment from an employee?

• A. No, unless obligated to do so by statute or court order.
• B. An agreement can occur when repaying a loan with advance employer authorization.
• C. Wages may be withheld whenever the employer suspects misconduct.
• D. An employer may deduct any amount for minor errors.

Answer: (A)

Wages can only be withheld when the law specifically requires or authorizes the deduction. This protects employees from unilateral reductions in pay for any reason other than what the statute or a court order permits. In practice, you see this with things like wage garnishments or other court-ordered withholdings, where the statute outlines how much can be taken and under what circumstances. While some deductions can occur with written employee consent, they must be properly authorized and not reduce wages below the minimum wage, and they do not override a general rule that withholding isn’t allowed unless statute or court order directs it. Statements proposing misconduct-based withholding or deductions for minor errors, or allowing loan repayments solely by agreement, would not meet that standard.

Wages can only be withheld when the law specifically requires or authorizes the deduction. This protects employees from unilateral reductions in pay for any reason other than what the statute or a court order permits. In practice, you see this with things like wage garnishments or other court-ordered withholdings, where the statute outlines how much can be taken and under what circumstances. While some deductions can occur with written employee consent, they must be properly authorized and not reduce wages below the minimum wage, and they do not override a general rule that withholding isn’t allowed unless statute or court order directs it. Statements proposing misconduct-based withholding or deductions for minor errors, or allowing loan repayments solely by agreement, would not meet that standard.