An employee owes an employer money. May an employer withhold wages from an employee without a written contract?


Typically, no. Labor Code Sec. 61.018. states:

“An employer may not withhold or divert any part of an employee’s wages unless the employer:

(1) is ordered to do so by a court of competent jurisdiction;
(2) is authorized to do so by state or federal law; or
(3) has written authorization from the employee to deduct part of the wages for a lawful purpose.”

Typical exceptions to this rule are contracts between employer/employee allowing for the deduction of expenses, court ordered child support obligations or court ordered restitution.


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