Farm Labor Contractor Practice Test

True or False: An employee must always receive a wage deduction statement.

1. True

2. False

3. Only for deductions over a certain amount

4. Only for hourly employees

The correct answer is: True

An employee must always receive a wage deduction statement because it is a legal requirement under wage and hour laws. This statement provides transparency regarding how an employee's wages are calculated, including details about any deductions made from their pay. By issuing this statement, employers ensure that employees are fully informed about their earnings and the amounts deducted for things such as taxes, insurance, or benefits. This promotes accountability and helps prevent disputes over pay since employees can verify that deductions are accurate and justified. Not receiving a wage deduction statement could lead to confusion and mistrust between the employer and employee, so it is crucial for employers to maintain clear communication around payroll practices. The requirement for a wage deduction statement applies to all employees and is not limited to specific categories, thereby ensuring uniformity in payroll processing and employee rights.