Asian Journal- The Filipino-American Community Newspaper

Article Index
Is your employer making lawful deductions from your paycheck? (part 1)
Page 2
All Pages

4.) Deduction for “facilities” furnished in addition to wages – An employer may deduct the reasonable costs of board, lodging or other “facilities” furnished to employees in addition to their wages. In some situations, employees may sleep and eat at the workplace, as may be true if they work in residential care facilities.  Here, the employer may credit the costs of the room and lodging to comply with the requirements of the minimum wage law. The amounts that may be credited are prescribed by regulations and must be in writing and signed by the employee.

“Facilities furnished to employees” might also include a company store. If employees buy items at the company store and “charge” it to their wages, the employer may deduct the cost of the item from the employee’s wages. However, the employer must maintain and preserve records substantiating these costs. Failure to keep cost records may bar such a deduction.

Next week, we will discuss the deductions which cannot be lawfully made on an employee’s paycheck.


[C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully obtained significant results, including several million dollar recoveries for consumers against insurance companies and big business.   He is a member of the Million Dollar-Advocates Forum - a prestigious group of trial lawyers whose membership is limited to those who have demonstrated exceptional skill, experience and excellence in advocacy.  He has been featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements for his professional accomplishments and recipient of numerous awards from community and media organizations .  His litigation practice concentrates in the following areas: serious personal injuries, wrongful death, insurance claims,  unfair business practices,  wage and hour (overtime) litigation.  He is a graduate of Georgetown University Law Center Washington, D.C. and the University of the Philippines.  You can visit his website at www.joesayaslaw.com  or contact his office by telephone at (818) 291-0088.]  Inquiries to this law office are welcome and at no cost.

< Prev