Section 8.15.160. Deductions from an employee's wages.

	(a)  The provisions of AS 23.05.140 and AS 23.10.085(c) do not limit the right of an employer and employee to enter into a written agreement to provide for deductions of monetary obligations of an employee. Requiring or inducing an employee to return or give up any part of the compensation that the employee is entitled, whether by force, intimidation, or threat of dismissal from employment, or by any other manner, is prohibited. A written agreement for deductions payable to the employer or person acting in the employer's behalf or interest is not valid if it would have the effect of reducing an employee's wage rate below the statutory minimum wage or overtime rates, or if it would require an employee to reimburse the employer for any of the following:  
		(1) customer checks returned due to insufficient funds or any other reason;  
		(2) non-payment for goods or services as a result of theft or credit default;  
		(3) cash or cash register shortages unless the employee admits, willingly and in writing, to having personally taken the specific amount of cash that is alleged to be missing;  
		(4) lost, missing, or stolen property, unless the employee admits willingly and in writing, to having personally taken the specific property alleged to be lost, missing, or stolen; or  
		(5) damage or breakage costs unless clearly due to willful conduct of the employee and the employee has acknowledged responsibility in writing.  
	(b)  An employer may deduct an amount from earnings based on a written agreement signed by the employee, if the employer has been directed by the employee to pay a sum for the benefit of that employee to a creditor, donee, or other third party. The employer, or any person acting in the employer's behalf or interest, may not derive any profit or benefit from the transaction.  
	(c)  An employer may deduct an amount from earnings based on a written agreement signed by the employee to reimburse an employer for transportation from the place of hire to the place of employment if the deduction does not reduce the  
		(1) employee's wages below the statutory minimum; or  
		(2) overtime compensation rate below one and one-half times the contractual rate of pay.  
	(d)  An employer may deduct an amount from earnings, based on a written agreement signed by the employee, to reimburse an employer for the reasonable cost of furnishing board and lodging, if  
		(1) repealed 5/16/2003;  
		(2) the board and lodging facilities of the employer are "customarily" furnished, as described in 29 C.F.R. 531.31, by the employer and voluntarily used by the employees; and  
		(3) the cost to the employee for the use of the employer's board and lodging facilities is reasonable and without profit to the employer.  
	(e)  Unless the employer and the employee have executed a written agreement as described in (d) of this section, before the deduction, the employer is prohibited from seeking to retroactively deduct the cost of board and lodging as an offset against wages due upon termination or wage deficiencies subject to collection by the department.  
	(f)  The director will make the determination regarding the cost of board and lodging under (d)(3) of this section. The determination will be made in accordance with 29 C.F.R. 531.3 - 531.5 and 531.29 - 531.35. A deduction of $15 per day or less for board and lodging will not require a special determination, unless evidence indicates that the charge is unreasonable for the facilities provided or results in a profit to the employer.   
	(g)  An employer may deduct an amount from the wages of an employee as a security deposit to ensure the return, clean and in a state of good repair, of uniforms or equipment issued by the employer, if the  
		(1) deduction is based on a written agreement;  
		(2) total deposit does not exceed the cost of the item; and  
		(3) deduction does not reduce the employee's wage below the statutory minimum or reduce the employee's overtime compensation below one and one-half times the contractual rate of pay.  
	(h)  An employer shall give each employee a written or electronic statement of earnings and deductions for each pay period. The statement of earnings and deductions must contain the employee's  
		(1) rate of pay;  
		(2) gross wages;  
		(3) net wages;  
		(4) beginning and ending dates of the pay period;  
		(5) repealed 9/28/85;  
		(6) repealed 9/28/85;  
		(7) federal income tax deductions;  
		(8) Federal Insurance Contribution Act deductions;  
		(9) Alaska Employment Security Act contributions;  
		(10) board and lodging costs;  
		(11) advances;  
		(12) straight time and overtime hours actually worked in the pay period; and  
		(13) other authorized deductions.  

Authorities

23.05.060;23.10.060;23.10.065;23.10.085;23.10.095

Notes

Authority

AS 23.05.060 AS 23.10.060 AS 23.10.065 AS 23.10.085 AS 23.10.095

History

Eff. 12/9/78, Register 68; am 9/28/85, Register 95; am 4/29/99, Register 150; am 5/16/2003, Register 166; am 3/2/2008, Register 185