Manitoba changing rules for deductions for payroll errors, cash advances

Still prohibits employers from deducting amounts for interest, service charges, fees related to error
|payroll-reporter.com|Last Updated: 07/15/2011

Manitoba is changing the legislation that covers the way employers may deduct from employees’ wages for payroll errors and cash advances.

The province has revised provisions of The Employment Standards Regulation effective Aug. 1, 2011.

It has been revised to specify that employers may recoup the amount of a cash advance or a payroll error that benefitted the employee by deducting either the amount of the advance or error as long as the employee agrees to the deduction or the amount that would be allowed if the employer had a garnishment order for the error or advance under the garnishment act, whichever is greater.

The garnishment act exempts 70 per cent of an employee’s wages from garnishment but in no case shall the amount exempted be less than $250 per month for an employee with no dependants or $350 per month for an employee with dependants. The amount may be prorated if the garnishment period is shorter than one month.

The regulation still prohibits employers from deducting amounts for interest, service charges or fees connected to the cash advance or payroll error.

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