New Jersey law dictates specific circumstances under which an employer may legally deduct from an employee’s wages. Permissible deductions include those authorized by the employee, such as contributions to health insurance or retirement plans, as well as court-ordered deductions like wage garnishments and child support. Additionally, deductions for taxes (federal, state, and local) are mandated by law. Conversely, unauthorized deductions, such as those for broken equipment or cash shortages, are generally prohibited unless specific legal exceptions apply.
Understanding these regulations is crucial for both employers and employees. Compliance safeguards employers from legal action and fosters a positive work environment built on trust and fair practices. For employees, this knowledge protects their financial well-being and ensures they receive their rightfully earned wages. Historically, wage and hour laws have evolved to prevent exploitation and ensure equitable compensation for labor. New Jersey’s specific statutes reflect this broader societal goal of protecting workers’ rights.
