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Jul23

RE: Deduct Salary

If employee missed punch, can we deduct 30 minutes from their salary? Is it legal. Please advise Thank you

No, this is not legal. Both state and federal minimum wage laws require that an employee be paid for all the time he or she works. If an employee works 7.5 hours, he or she must be paid for 7.5 hours, even if the employee forgot to punch in or out. As the employer, you are required under the federal FLSA to keep accurate payroll records including hours worked for 3 years.

An employee who forget to punch in or out can be disciplined or terminated, but must still be paid for all the time worked. Even if the employee signed a handbook or policy stating the deduction would be made, it would not be legal.

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This entry was posted on Friday, July 23rd, 2010 at 8:49 am and is filed under
Compensation.
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