Connecticut Employment Law Blog Insight on Labor & Employment Developments for Connecticut Businesses

Employer Deductions Allowed in Connecticut, With Conditions

Posted in Human Resources (HR) Compliance, Manager & HR Pro’s Resource Center, Wage & Hour

In a post last week, I pointed out that New York amended its laws to allow for some deductions by employers from an employee wages.  I joked that Connecticut could do the same as some of Connecticut’s rules are a bit dated themselves.  

A nice note from a Connecticut Department of Labor official suggested that I point readers to the page where the deductions are allowed.  Its actually something I’ve covered before and I’m happy to do so again. 

Connecticut has an online form for employers to send to the Connecticut Department of Labor for approval.  What types of items may be deducted with approval?

  • Life Insurance Premium;
  • Loan;
  • Employee Purchases;
  • Pension Plan Employee Contribution;
  • Payroll Savings Plan;
  • United Way Contribution; and
  • Christmas/Hanukkah Club. 

I’ll leave aside the Christmas/Hanukkah Club for the moment (are there any employers still using that?) and merely note that the list is not exclusive. (Update: Indeed, the DOL has indicated to me since this was published that they have approved other types of deductions as well.) As noted on the CTDOL website: “IF YOU WISH TO USE IT TO AUTHORIZE ANY ITEMS LISTED FOR PAYROLL DEDUCTION, PLEASE COMPLETE THE INFORMATION IMMEDIATELY BELOW AND YOUR COMPANY WILL BE CONSIDERED FOR APPROVAL AND NOTIFIED BY MAIL. A REQUEST FOR ANY ADDITIONAL PAYROLL DEDUCTION ITEMS MUST BE SUBMITTED SEPARATELY.”

There’s more information available on the CTDOL website here.    And if you’re interested in the corresponding state statute it can be found at Conn. Gen. Stat. 31-71e.

  • Zach

    Good post.  As I’m sure you know, one of the really interesting issues that comes up with wage deductions and 31-71e is when employers inadvertantly make an overpayment to an employee.  As I understand it, the CT DOL normally takes the position that no employee wage deduction authorization is required because the overpaid money is really the employer’s “property”. 

  • Greg Pepe

    Has anyone found a form approved by the Commissioner in the past so that private school teachers can elect to receive their pay over a 12 month period instaed of the 9.5 months they actually work?  The AG’s office is making something of an isue about this for a CT private school, and it would be interesting if this was ever approved for any school by the Commissioner.