According to a U.S. Labor Department (DOL) opinion letter, while an Employer can establish a policy that calls for deductions from non-exempt employees’ wages if they damage or lose company equipment, extending that policy to exempt (salaried) employees could jeopardize their exempt status.

The DOL states that "Deductions from the salaries of otherwise exempt employees for the loss, damage or destruction of employer property would defeat the exemption because the employees’ salaries would not be ‘guaranteed’ or paid ‘free and clear’ as required by the (Fair Labor Standards Act) regulations."

Labor Department regulations say exempt employees must receive their full, predetermined salary, "not subject to reduction because of variations in the quality or quantity of work performed." The rules do allow some exceptions, such as certain full-day deductions, penalties for safety rules, unpaid leave time (FMLA) and offsets for jury fees.

It should be noted that the wage deduction from non-exempt employees for lost or damaged equipment cannot be made if it would bring their wages below the statutorily-required minimum wage.