Permissible Wage Deductions:

Employers may make the following types of deductions from employees’ wages:

  • Those required by federal or state law;
  • Those expressly authorized in writing by the employee for the purpose of paying:
  • union dues;
  • life insurance premiums;
  • hospital or surgical insurance;
  • group accident and health insurance;
  • group annuities;
  • contributions to credit unions, a community chest fund, a local arts council, a local science council, a local arts and science council, or a Minnesota benefit association;
  • a federally or state registered political action committee; or
  • for participation in an employee stock purchase or savings plan for periods longer than 60 days, including gopher state bonds.

Minn. Stat. § 181.06.

Uniform and Equipment Wage Deductions:

An employer may also make deductions from an employee’s wages for the following items, so long as the employee’s wage rate does not fall below the minimum wage in effect:

  • Purchased or rented uniforms or specially designed clothing required by the employer, by the nature of the employment, or by statute as a condition of employment, which is not generally appropriate for use except in that employment and not to exceed $50;
  • Purchased or rented equipment used in employment (except tools of a trade, a motor vehicle or any other equipment which may be used outside the employment) not to exceed $50;
  • Consumable supplies required in the course of that employment; or
  • Travel expenses incurred in the course of employment, except those incurred in traveling to and from the employee’s residence and place of employment.

An employer must reimburse an employee for the full cost of these items when the employee ends employment, but the employer may require the return of a uniform, equipment or other items.

Minn. Stat. § 177.24.

Impermissible Wage Deductions and Exceptions:

Under Minnesota law, an employer generally cannot make a deduction, either directly or indirectly, from the wages due to or earned by an employee “for lost or stolen property, damage to property, or to recover any other claimed indebtedness running from employee to employer” unless one of the following two situations applies:

1.     After the loss occurred or the claimed indebtedness arose, the employee voluntarily authorizes the employer to make the deduction; or

2.     A court holds the employee liable for the loss or debt.

Minn. Stat. § 181.79, subd. 1(a).

If the employee authorizes the deduction, that authorization must be in writing and must state the amount that will be deducted from the employee’s wages for each pay period that the deduction will apply.   If an employer violates this statute, it can be held liable for twice the amount of the deduction taken.  This statute does not apply when (1) an applicable collective bargaining agreement contains a contrary provision; (2) an employer of employees who are commissioned salespeople establishes rules for purposes of discipline, by fine or otherwise, in cases where errors or omissions in performing their duties exist; or (3) where an employee, prior to making a purchase or loan from the employer, voluntarily authorizes in writing that the cost of the purchase or loan shall be deducted from the employee’s wages, at regular intervals or upon termination of employment.