Pay Advance Agreement and Wage Deduction Authorization

Summary

This template is a Pay Advance Agreement and Wage Deduction Authorization that employers can provide to employees who request pay advances or emergency loans. This template includes practical guidance, drafting notes, and alternate clauses. This template is intended for private employers. Employers may include this template in an employee handbook, distribute it to new employees during the onboarding process, or use as a standalone template in connection with a Pay Advance and Loan Policy. It is generally based on federal law and does not address all potential state law distinctions that could restrict the scope of the authorization, such as state privacy laws; thus, you should check any relevant state and local laws. For a template that employers can use to address employee requests for pay advances or emergency loans, see Pay Advance and Loan Policy. For more information relating to payroll deductions, see Deductions of Wages and Garnishments and Payroll Corrections and Deduction Policies: Key Drafting Tips. For information on wage garnishments, see Wage Garnishment State Law Survey. For information on state laws concerning payroll deductions, see the Pay Timing, Frequency, and Deductions column of Wage and Hour State Practice Notes Chart.