Here is the federal link re wage deductions:

http://www.dol.gov/esa/regs/compliance/whd/whdfs16.pdf

Kentucky law on wage deductions:
Kentucky - KRS statute 337.060

ILLEGAL DEDUCTIONS
No employer shall withhold from any employee's wages any part of the agreed wage rate; unless
(a) the employer is required to do so by local, state, or federal law
(b) when a deduction is expressly authorized in writing by the employee to cover insurance premiums, hospital, or medical dues
(c) other deductions not amounting to a rebate or deduction from the standard wage arrived at by collective bargaining or pursuant to wage agreement or statute
(d) deductions for union dues where such deductions are authorized by joint wage agreements or collective bargaining contracts negotiated between employers and employees or their representatives.

No employer shall deduct the following from the wages of employees:
(a) Fines
(b) Cash shortages in a common money till, cash box or register used by two (2) or more persons
(c) Breakage
(d) Losses due to acceptance by an employee of checks which are subsequently dishonored if such employee is given discretion to accept or reject any check
(e) Losses due to defective or faulty workmanship, lost or stolen property, damage to property, default of customer credit or nonpayment for goods or services received by the customer if such losses are not attributable to employee's willful or intentional disregard of employer's interest