Minnesota Wage Deduction Summary

Minnesota employers may make deductions from an employee's paycheck only if:

• The deduction is required by law or court order (i.e., for taxes, court‑ordered garnishments);

• The employee provides voluntary written authorization for the deduction;

• The employee is covered by a union collective bargaining agreement that allows the deduction;

• The employee is a commissioned salesperson subject to rules regarding deductions for performance issues; or 

• Before making a purchase or taking out a loan from its employer, the employee voluntarily agreed in writing to have the cost of that loan or purchase taken from the employee’s wages.

Deductions for the following items may be taken from an employee’s paycheck as long as the deductions, when subtracted from the employee’s wages, do not reduce the wages below the minimum wage:

• Up to $50 for purchased or rented uniforms;

• Up to $50 for purchased or rented equipment used to do the employee’s job;

• Consumable supplies used to do the employee’s job; and

• Travel expenses incurred for work, except those incurred in traveling to and from the employee's residence and place of employment.

At the termination of an employee's employment, the employer must reimburse the employee for the full amount deducted for these specific items.

It is illegal for Minnesota employers to make deductions from an employee’s paycheck for:

• Lost money (i.e., cash register shortages) or broken equipment unless after the loss occurs, the employee gives the employer voluntary written authorization to deduct the same from the employee’s wages or the employee has been found liable by a court for the loss.

Employees have the right to receive:

• A notice at the commencement of employment with a list of all deductions that may be made; and

• An earnings statement for each pay period that contains a clear itemization of all deductions.

For more information about wage related issues, contact your employment attorney at Bravura Group.