29 C.F.R. § 778.304

Amounts deducted from cash wages—general

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(a) The word “deduction” is often loosely used to cover reductions in pay resulting from several causes:

(1) Deductions to cover the cost to the employer of furnishing “board, lodging or other facilities,” within the meaning of section 3(m) of the Act.

(2) Deductions for other items such as tools and uniforms which are not regarded as “facilities.”

(3) Deductions authorized by the employee (such as union dues) or required by law (such as taxes and garnishments).

(4) Reductions in a fixed salary paid for a fixed workweek in weeks in which the employee fails to work the full schedule.

(5) Deductions for disciplinary reasons.

(b) In general, where such deductions are made, the employee's “regular rate” is the same as it would have been if the occasion for the deduction had not arisen. Also, as explained in part 531 of this chapter, the requirements of the Act place certain limitations on the making of some of the above deductions.

[33 FR 986, Jan. 26, 1968, as amended at 46 FR 7314, Jan. 23, 1981]
Notes of Decisions
Cited in 1 case, 1997–1997 · leading case: Cash v. Conn Appliances, Inc., 2 F. Supp. 2d 884 (E.D. Tex. 1997).
Cash v. Conn Appliances, Inc., 2 F. Supp. 2d 884 (E.D. Tex. 1997). “See 29 C.F.R. §§ 778.304 (a), 778.307. However, in doing so, they must use earnings sans those pay reductions to figure the regular rate.”
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