Rhode Island’s wage deduction law has been amended to further limit the types of deductions or withholdings employers may make from employee wages.
Prior to the amendment, employers were generally prohibited from making deductions that are not authorized by federal or state law (which includes court orders) without first obtaining the employee’s electronic or written consent. Now, employees cannot authorize and employers cannot make deductions from an employee’s wages for the following:
· Spoilage or breakage;
· Shortages or losses; or
· Fines or penalties for tardiness, misconduct, or quitting by an employee without notice.
Effective: Currently in effect
Coverage: All employers with employees in Rhode Island.
Action Required: You should familiarize yourself with the recent changes to Rhode Island’s wage deduction law and ensure that deductions are not taken from your employees’ wages for any of the newly prohibited reasons, even if they authorize to the deductions.
As always, please contact your Human Resources Business Partner if you have any questions.
*Produced in cooperation with Jackson Lewis P.C.