Wage assignment defined

Posted on January 13, 2015 4:37 pm under Overtime Law and Minimum Wage Violations

Wage assignment refers to voluntarily permitting an employer to deduct a part of your paycheck to pay a debt. Unlike garnishment, a mandatory deduction from paychecks, this type of arrangement is seen as a deliberate action by an employee to settle any debt to his employer or any third party.

In Wisconsin, wage assignment is used in many different circumstances, such as when a worker tries to pay off a loan by having his employer hold back a certain amount of money from his future wages. In some instances, an employee may also design a wage assignment plan with his employer that would allow his employer to deduct money as compensation for his incorrect actions. However, any wage assignment is considered unlawful if the employee does not consent in writing to the deduction.

If you think your employer has been unfair in making deductions from your pay, our legal team at Habush Habush & Rottier S.C. ® may look into your situation to see how we might be able to help you. Call our Milwaukee office at (414) 271-0900 today.