Costco Paycheck Deductions Didn't Violate FLSA: Judge

Law360, New York (August 2, 2011, 3:33 PM EDT) -- A California federal judge ruled Monday in a collective action that Costco Wholesale Corp. did not break federal and state labor laws by withholding the balance due on employees' company-issued credit cards from their final paychecks.

U.S. District Judge Jacqueline H. Nguyen said the wholesale retailer did not violate the Fair Labor Standards Act or California labor laws in making the paycheck deductions, because doing so did not reduce the employees' wages in violation of minimum wage or overtime laws.

While the 19 former employees said...
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