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Marlene Mitten Garnishment Manager Hewitt Associates

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Federal Wage Hour Law<br />

Restrictions on Deductions<br />

• Employer Insurance Bonds - employer buys an insurance<br />

policy against fraud and negligence attributed to the employee –<br />

“bonds” the employee<br />

• Employer cannot required the employee to pay for the insurance<br />

before the employee starts employment<br />

• Cost of the bond may be spread out and deducted from the<br />

employees wages, but only to the extent the deductions do not<br />

reduce the employee’s wages below FLSA minimum wage

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