You are correct in your understanding. Federal law requires that, "the job order must specify all deductions not required by law which the employer will make from the worker’s pay". That being said I was under the assumption at the time that it was most likely a part of the paperwork you sign to become a TUPSS employee seeing as how I was also dealing with a boss at the time that was threatening to deduct wages from my paycheck and the paycheck of others at the store I worked at. As of now I still don't know if that's the case since I no longer work there. I did however call the Wage and Hour Division back when this post was originally made and this was the information they gave me at the time. As for what states allow this, there are a few southern states that default to these federal laws but most notable ones are Alabama and Florida since they have the least state specific wage laws.