Section 8 AAC 15.160 - Deductions from an employee's wages(a) The provisions of AS 23.05.140 and AS 23.10.085(c) do not limit the right of an employer and employee to enter into a written agreement to provide for deductions of monetary obligations of an employee. Requiring or inducing an employee to return or give up any part of the compensation that the employee is entitled, whether by force, intimidation, or threat of dismissal from employment, or by any other manner, is prohibited. A written agreement for deductions payable to the employer or person acting in the employer's behalf or interest is not valid if it would have the effect of reducing an employee's wage rate below the statutory minimum wage or overtime rates, or if it would require an employee to reimburse the employer for any of the following: (1) customer checks returned due to insufficient funds or any other reason;(2) non-payment for goods or services as a result of theft or credit default;(3) cash or cash register shortages unless the employee admits, willingly and in writing, to having personally taken the specific amount of cash that is alleged to be missing;(4) lost, missing, or stolen property, unless the employee admits willingly and in writing, to having personally taken the specific property alleged to be lost, missing, or stolen; or(5) damage or breakage costs unless clearly due to willful conduct of the employee and the employee has acknowledged responsibility in writing.(b) An employer may deduct an amount from earnings based on a written agreement signed by the employee, if the employer has been directed by the employee to pay a sum for the benefit of that employee to a creditor, donee, or other third party. The employer, or any person acting in the employer's behalf or interest, may not derive any profit or benefit from the transaction.(c) An employer may deduct an amount from earnings based on a written agreement signed by the employee to reimburse an employer for transportation from the place of hire to the place of employment if the deduction does not reduce the (1) employee's wages below the statutory minimum; or(2) overtime compensation rate below one and one-half times the contractual rate of pay.(d) An employer may deduct an amount from the minimum wage or overtime rates set out under AS 23.10 of an employee's earnings to reimburse an employer for the reasonable cost of furnishing board or lodging, if (1) the board or lodging facilities of the employer are "customarily" furnished, as described in 29 C.F.R. 531.31, by the employer;(2) the cost to the employee for the use of the employer's board or lodging facilities is reasonable and without profit to the employer as determined by the department;(3) the employer has provided the employee prior written notice that(A) provides a basic description of the board or lodging;(B) states the amount to be deducted weekly for the board or lodging; and(C) states that the employee's acceptance of the board or lodging and deduction is voluntary; and(4) the employee has provided signed and written acceptance of the board or lodging and deduction.(e) Unless the employer has provided the employee the prior written notice described in (d) of this section, the employer is prohibited from taking a deduction or from seeking to retroactively deduct the cost of board or lodging as an offset against wages due upon termination or wage deficiencies subject to collection by the department.(f) The director will make the determination under (d)(1) of this section in accordance with 29 C.F.R. 531.29- 531.35; a deduction of $20 per day or less for board or lodging will not require a determination by the director, unless evidence indicates that the deduction is unreasonable for the board or lodging provided or results in a profit to the employer.(g) An employer may deduct an amount from the wages of an employee as a security deposit to ensure the return, clean and in a state of good repair, of uniforms or equipment issued by the employer, if the (1) deduction is based on a written agreement;(2) total deposit does not exceed the cost of the item; and(3) deduction does not reduce the employee's wage below the statutory minimum or reduce the employee's overtime compensation below one and one-half times the contractual rate of pay.(h) An employer shall give each employee a written or electronic statement of earnings and deductions for each pay period. The statement of earnings and deductions must contain the employee's (4) beginning and ending dates of the pay period;(7) federal income tax deductions;(8) Federal Insurance Contribution Act deductions;(9) Alaska Employment Security Act contributions;(10) board or lodging deductions;(12) straight time and overtime hours actually worked in the pay period; and(13) other authorized deductions.(i) An appeal of a determination made by the director under this section must (1) be filed with the commissioner not later than 20 days after the employer received the determination; (3) set out the specific reasons for the appeal.(j) The commissioner will grant or reject an appeal under (i) of this section not later than 20 days after the date the employer filed it; in the decision to grant or reject the appeal, the commission will state that the decision is final and include a statement of the employer's right to request judicial review not later than 30 days after the decision.Eff. 12/9/78, Register 68; am 9/28/85, Register 95; am 4/29/99, Register 150; am 5/16/2003, Register 166; am 3/2/2008, Register 185; am 7/28/2023, Register 247, October 2023Authority:AS 23.05.060
AS 23.10.060
AS 23.10.065
AS 23.10.085
AS 23.10.095