Utah Contractor Practice Exam

If an employee arrives 25 minutes late for work, what is the maximum wage deduction the employer can impose?

1. Deduct a half hour's wage

2. Deduct an hour's wage

3. Deduct for 25 minutes only

4. Not deduct from wages

The correct answer is: Deduct a half hour's wage

The maximum wage deduction an employer can impose for an employee arriving late is typically governed by state labor laws and company policies. In many cases, employers are allowed to round off the time for which they deduct pay. When an employee arrives 25 minutes late, rounding policies might lead to the deduction of half an hour's wage, which is common in various workplaces. This practice simplifies payroll calculations and maintains consistency across wage deductions. While it's permissible to deduct only for the actual time missed—in this case, the 25 minutes—employers often opt for rounding policies that can lead to deductions in increments, such as half an hour. This approach helps avoid disputes over minute-by-minute billing while providing a cushion in payroll management that reflects broader policies in place. Hence, the option to deduct for a half hour aligns with these typical practices.