While the Fair Labor Standards Act (FLSA) provides clear guidelines on minimum wage and overtime, it also allows for certain deductions from employee wages—provided they do not bring an employee’s earnings below the federal minimum wage threshold. However, what deductions are legally permitted, and how do they vary across states? More importantly, how do deductions related to safety infractions or damage to company property fit within the legal landscape?
Common Legal Paycheck Deductions
Deductions from an employee’s wages generally fall into a few broad categories:
1. Legally Required Deductions – These include federal and state income taxes, Social Security, and Medicare. These deductions are non-negotiable and are mandated by law.
2. Voluntary Deductions – These are deductions employees opt into, such as health insurance, retirement plan contributions, or union dues.
3. Employer-Authorized Deductions – These include deductions for uniforms, equipment, and even loans extended to employees by the company. However, under FLSA, these deductions cannot bring the employee’s earnings below minimum wage for the workweek.
4. Disciplinary or Performance-Based Deductions – In some states, deductions related to safety infractions or damage to company property are permitted, but they must adhere to strict guidelines. This is where things get complicated.
Deductions for Safety Infractions or Damage to Company Property
While employers may be tempted to deduct pay for damages caused by an employee—such as a driver hitting a dock or backing into another truck—the legality of these deductions is highly state-dependent.
· Federal Law Considerations: The FLSA does not explicitly prohibit deductions for damages or safety violations. However, any deduction that reduces the driver’s earnings below minimum wage is considered illegal. Employers must also ensure that such deductions are not retaliatory or arbitrary.
· State Law Variations: Some states impose additional restrictions. For instance:
o California – Strictly limits deductions for damages, requiring proof that the employee acted with gross negligence or willful misconduct.
o New York – Strictly limits deductions in general, including those for employee benefits.
o Texas – Permits deductions for property damage if there is an agreement in place, but employers must be cautious about reducing wages below minimum thresholds.
For trucking companies operating across multiple states, it is essential companies stay updated on varying legal requirements to ensure compliance.
The FLSA and State Law Variations in the Trucking Industry
Although the FLSA sets federal labor standards, states often enact their own labor laws that expand upon or override certain provisions. Here are some critical distinctions:
1. Minimum Wage Differences – As mentioned in Part 1, many states enforce a higher minimum wage than the federal $7.25 per hour. For trucking companies paying per mile, ensuring compliance requires calculating total weekly earnings and comparing them against applicable state minimum wage laws.
2. Overtime Laws – The FLSA’s Motor Carrier Exemption means many truck drivers are not entitled to overtime pay under federal law. However, some states—such as California—require overtime pay for certain drivers, even if they fall under the federal exemption.
3. Rest Break and Meal Period Requirements – The FLSA does not mandate meal or rest breaks, but some states, like Oregon and Washington, have specific requirements for truck drivers, enforcing mandatory break periods that must be compensated.
Jurisdictional Application of State Labor Laws
For drivers who operate in multiple states or are employed by companies headquartered in different states, determining which labor laws apply can be complex. Generally, the labor
laws of the state where the driver performs most of their work or where the employer is headquartered will govern the employment relationship. This means, in most cases, an over-the-road driver who lives in California but whose company is headquartered in Oklahoma would instead be governed by Oklahoma’s employment laws so long as the driver does not complete most of their work in California. If you believe something your company is doing is unfair, it’s always a good idea to talk to your Driver Manager, a senior Operations professional, and/or Human Resources. All should be well-versed on laws governing transportation, with HR being the most well-versed on employment law.
Company Communication for Deductions
Often, regardless of if state law requires it, employers will require candidate signature in orientation allowing deductions for negligent damage to company property. It is important to read the paperwork you sign and ask questions if you do not understand it. Should company property incur damage from an accident, typically a company would not deduct for that. It is part of the risk companies incur in hiring people for an important and difficult job. A few examples of negligent damage would be:
1. Driver had an animal in the truck that was not approved or potentially not trained in a way to avoid causing further damage than regular human wear and tear.
2. Driver was regularly relieving themself in the cab rather than at a truck stop and the cost to clean the truck of hazardous human waste is extensive.
3. Driver was smoking in the truck after requesting a non-smoking truck, which requires a more expensive deep clean.
When it comes to safety infractions, I have rarely seen punitive deductions from trucking companies to drivers. Usually they instead will offer a safety bonus for a safe driving record, and drivers simply do not qualify for the bonus if they have certain safety infractions. I have also seen companies have certain requirements for an add-pay to apply, and if a driver does not meet those requirements than the add-pay may be removed. An add-pay is any set pay for specific types of work performed beyond that of mileage or percentage pay, such as tarp pay, repower pay, New York Burroughs pay, etc. Typically, a company would want to have a written policy in the policy book or a signed memorandum of understanding from a driver in advance notating what types of safety infractions would incur a wage deduction or what missed requirements would cause losing an add-pay.
Conclusion
The trucking industry operates at the crossroads of federal and state labor regulations, making compliance a constant challenge. Employers must be diligent about paycheck deductions, particularly for safety infractions and damages, ensuring they align with both
federal and state laws. As state regulations continue to evolve, trucking companies and drivers alike should remain informed to safeguard their rights and responsibilities.
Understanding and adhering to these laws not only helps avoid legal pitfalls but also fosters fair and transparent employment practices. As the industry continues to shift, staying ahead of these changes is essential for both drivers and employers navigating the complex world of labor law in trucking.
Brad Klepper is a regular contributor to The Trucker, providing valuable information for drivers and motor carriers. He is also president of Interstate Trucker Ltd., a law firm entirely dedicated to legal defense of the nation’s commercial drivers. Brad is also president of Driver’s Legal Plan, which allows member drivers access to his firm’s services at discounted rates. For more information, contact him at (800) 333-DRIVE (3748) or interstatetrucker.com and driverslegalplan.com.
