The number of deductions that payrolling services can take out of employee paychecks is under scrutiny in several states. North Dakota and California are just a few of the states trying to regulate paycheck deductions. Many local governments have already amended their paycheck deduction rules or are looking to do so in the future.
For example, North Dakota recently passed legislation that reduces the amount of money employers can withhold from worker paychecks. The new rules state any deductions need to be authorized by the staff member in writing.
In California, about 600 nurses in Los Angeles County are seeing payroll deductions resume this month due to a miscommunication regarding yearly bonuses. The paycheck withholdings, totaling in $1.8 million, are being conducted to repay the county for a payrolling error made in 2006. Nurses see the deductions as a financial burden and staffing shortages have caused many to overwork themselves already.
However, many workers do not believe employers are taking anything they have not already approved and believe paycheck protection laws are unneeded in their state. HR professionals might want to consider staying up to date on their state's paycheck deduction legislation to avoid any miscommunication with workers.
