Payroll Deduction for Work Mistake

Question

A friend's employer told her that if she makes a mistake in doing payroll for their employees the money will come out of her payroll -is this a legal option for employers

Answer 1

This is only legal if it is written into her job contract. If she didn't sign a contract agreeing to those terms then it is not legal and she needs to bring that up with the employer - if they claim they can do it anyway then she needs to contact a lawyer or someone at the irs.

Answer 2

Most states have labor laws that prohibit employers from deducting the cost of any errors made by an employee from the pay of employees.  She should refuse to do so if the situation involves others and report the employer to the state labor officials if there is any repercussions on her.