29 CFR 13.23 – Deductions
The contractor may make deductions from the pay and benefits of an employee who is using paid sick leave only if such deduction qualifies as a:
(a) Deduction required by Federal, State, or local law, such as Federal or State withholding of income taxes;
(b) Deduction for payments made to third parties pursuant to court order;
(c) Deduction directed by a voluntary assignment of the employee or his or her authorized representative;
(d) Deduction for the reasonable cost or fair value, as determined by the Administrator, of furnishing such employee with “board, lodging, or other facilities,” as defined in 29 U.S.C. § 203(m) and 29 CFR part 531;
(e) Deduction, to the extent permitted by law, for the purpose of recouping pay and benefits provided for paid sick leave as to which the contractor retroactively denied the employee’s request pursuant to § 13.5(e)(3)(iii) or because the contractor approved the use of the paid sick leave based on a fraudulent request.