Uniform deduction from paycheck: What’s legal, what’s not

What are uniform deductions — and why employers can’t afford to ignore them

Uniform deductions are a payroll deduction that your business can subtract from an employee’s paycheck to cover the cost of uniforms required to work in your company. That said, this type of deduction must meet certain conditions. Chiefly, the deduction cannot bring an employee’s wages below the federal minimum wage.

Legal framework for uniform deduction from paycheck

There are both federal and state laws that govern uniform deductions. Here are the key things that your business should be aware of if you’re deducting uniform costs from worker paychecks:

• FLSA guidelines: According to the FLSA, uniforms cannot be considered a “wage,” so your business cannot claim the cost of a uniform as part of an employee’s hourly wage. Likewise, the FLSA mandates that businesses cannot charge employees for uniforms if it lowers their pay to below the minimum wage level. Otherwise, your business can take a paycheck deduction for uniforms if they are required in your line of work and are not designed to be worn outside of work.
• State-specific regulations: Different states, however, can have their own provisions when it comes to involuntary deductions and uniform standards. Some prohibit these paycheck deductions entirely, while others require employers to pay for the cost of employee uniforms.
• Employer obligations and employee rights: It makes good business sense to check with your legal counsel to ensure compliance with local and federal regulations.

Legal uniform deductions: When can an employer reduce wages for a uniform?

While you can legally deduct the cost of a required uniform from your team members’ paychecks, you must offer written notification and make sure that the deductions do not reduce any employee’s pay below the minimum wage. This applies to both the initial uniform purchase and ongoing costs of care or uniform updates.

If you choose, you can opt for prorated deductions, but they still need to meet the minimum wage rule. Even if it is not required by state law where you do business, it’s best practice to request voluntary deductions and to make sure that uniforms are of a reasonable cost for your team members.

When uniform deductions cross the line: What employers can’t do

Occasionally, a uniform deduction will cross the line and be deemed excessive. Here are some things your organization cannot do when it comes to employee uniform deductions:

• You are not allowed to reduce an employee’s wages below the federal minimum wage to pay for a uniform.
• You cannot include an unauthorized charge for your losses.
• You cannot double-charge or over-charge for employee uniform costs.
• You also cannot reduce an employee’s overtime pay for uniform costs. You must still follow all guidelines for overtime pay.

You can, however, choose to offer a wage advance to help employees cover the cost of work uniforms. In the above cases, employees have recourse and can file a complaint or lawsuit, so it simply makes good business sense to follow the law.

It’s also important to note that you cannot deduct gratuities such as tips or required medical exams from an employee’s check.

State-by-state rules on uniform deductions

There are varying rules from state to state when it comes to uniform deductions that pass the test.

In Alaska, for example, business owners must pay for employee uniforms if they are required by law, or if the uniform is distinctive and advertises the business, and cannot be worn outside of work. In Idaho, employees must provide written consent for a paycheck deduction for uniforms. In Iowa, employers can charge for clothing and footwork required at work, but not for personal protective wear. And in South Carolina, businesses must provide seven days of notice before taking out a uniform deduction from an employee’s paycheck.

The takeaway is that it makes sense to do your homework and be aware of any statewide laws and nuances that could affect being able to charge for employee uniforms and adhere to them closely.

Employee rights and employer responsibilities

If a uniform is required to work in your organization, you must provide it, and you cannot deduct the cost from an employee’s paycheck if the cost reduces their pay below the minimum wage. You also cannot discriminate based on gender or other protected characteristics.

Handling uniform deduction disputes: Employer and employee options

If a dispute ever arises when taking a uniform deduction from an employee’s paycheck, your business has a few options to support a resolution that satisfies all parties involved.

• Steps for employees to challenge illegal deductions: If one of your employees believes that a uniform deduction was made illegally, the worker should first document the issue in writing. They can start by bringing their concern to your HR team, which can address it in-house and try to find an agreeable resolution. If this doesn’t happen or doesn’t solve the problem, then the team member can file a complaint with the state labor board or turn to an attorney, if needed.
• Role of legal authorities and support services: Employees can seek the support of both legal authorities, in the form of a lawyer, and support services, such as the state labor board. They also have the FLSA on their side. Again, understanding employee rights is critical for every business owner.