Quick Quiz: Recovering Loans Or Advances


Gloria is a stock clerk for The Warehouse Company. She is paid on an hourly basis at the rate of $8.00 per hour.

Gloria experiences a personal financial emergency. She asks her employer for an advance of $200. Her employer agrees to loan her this amount, on the condition that she must pay it back in full on the next weekly payday. She agrees to this and also consents to the employer's recovering the advance through a deduction from her wages.

In the following workweek, Gloria works 45 hours.  For purposes of the federal Fair Labor Standards Act, what is the maximum amount of the loan that Gloria's employer is permitted to deduct from her wages for that workweek?


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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