Nothing is as noticeable to an employee as the bottom line number on his paycheck.  Consequently, employers should know the ground rules for wage withholding in North Carolina—some of which have recently been amended:

Generally, it is advisable to have a clear, written authorization, signed by the employee, specifying the amount to be withheld before deducting from an employee's wages.  Where authorization seems impractical, or where a deduction might threaten minimum wages, employers are well advised to consult counsel for additional guidance.

• Unless authorized to withhold by law (e.g., taxes, garnishments) an employer generally must receive written authorization from the employee to withhold from wages.  The authorization must be signed by the employee before the relevant payday and must state the reason for the deduction.
• If the amount of the deduction (either as a sum certain or percentage of pay) is known and agreed upon in advance, the authorization should specify the amount.
• If the amount of the deduction is not known in advance, then the employer must send the employee a second written notification once the amount is calculated.  This second notice must also inform the employee of his right to withdraw the authorization and give him a "reasonable opportunity" to withdraw it.
• Withholdings made for the convenience of the employer may not be made from overtime pay but may be made from wages for regular time worked.  Wages for the first 40 hours in a week may not be reduced to an amount that is below minimum wage.
• If the deduction is the result of cash shortages, inventory shortages or loss or damage to the employer's property, special rules apply.  For example, the employer does not need written authorization to withhold from pay for this loss if the employee is arrested.  If the employee is not convicted, however, the employer must reimburse the amount it withheld without a written authorization.
• Separate, written authorization is not strictly required when a deduction is made to recover "prepayments" (e.g., overpayment due to mistake, an advance to the employee, or the principal payments on a loan).  Still, written notice is advisable to avoid surprise and dispute.