Deductions

Employers cannot take money from an employee’s pay to cover a cash shortage if the employee does not have full control of the cash, or if the cash cannot be safely secured when the employee needs to leave it unattended. 

If there is a cash shortage, the employer must tell the employee at the end of their shift. The employee must be given the opportunity to explain the shortage or try to find it. An employer can only take money off an employee’s pay if they can demonstrate that the employee was responsible for the cash shortage. This must be done before the end of the employee’s pay period when the cash shortage happens. 

Employers can only make a deduction from an employee’s pay when the deduction is: 

• required or allowed by law; 

• agreed in writing by the employer and the employee; 

• ordered by a court; 

• for a pay advance or overpayment of pay to the employee received earlier; 

• a group benefit plan that the employee is part of; 

• an employee-requested contribution towards a savings plan; and 

• allowed by the Minimum Wage Order 

Employers cannot deduct from an employee’s pay in the following situations: 

• when a customer of the employer receives a service or product without paying for it; or 

• for poor work done by the employee or damage they caused to the employer’s property. 

Employers must give employees written notice before taking or asking back any of their pay in relation to a group benefit or savings plan. Written notice is also required for any advance, overpayment, or cash shortage. 

If the money is for a group benefit or savings plan, the notice must explain: 

• how much the contribution will be 

• when it will be taken (the schedule) 

• how it will be taken 

If the money is to repay an advance, overpayment, or cash shortage, the notice must explain: 

• the amount owed 

• why the amount is owed 

• how and when it will be repaid 

• how the repayment will happen 

The employee must be given a reasonable chance to review and discuss the repayment plan. 

The employer and employee can agree on a repayment plan. 
If they don’t agree, the employer can still recover the money, but only if: 

• the issue happened within the last 12 months 

• the employee is still employed 

• no more than 10% of gross pay is taken each pay period 

• repayment is completed within 12 months 

• the plan is reasonable, considering the amount owed, the employee’s earnings, and any financial hardship 

Employees can ask to change the repayment plan if they are experiencing financial hardship, and the employer must consider that request in good faith. 

Employers are not allowed to charge interest, fees, or penalties on these amounts. 

Uniforms 

Employers cannot deduct pay from an employee for uniforms or footwear supplied or required for the job. An employer may require a deposit of up to 25 percent of the cost of a corporately identified uniform. The deposit must be reimbursed when employment ends, and the uniform is returned to the employer. Employers should have employees sign to confirm they received their uniform items.