My employer has told me that they require me to take an hour lunch each day during the work week and at the end of the work week if i havent taken an hour lunch break that the days i didnt clock out for lunch they will deduct 1 hour pay from that day is this legal

Assuming you are a nonexempt employee, no it is not. However, they can discipline you, and even fire you, if you don't follow the company policy. Do you inform your supervisor when you aren't taking a lunch? And are you asked not to take it, or do you take it upon yourself to not take it?
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_785/29CFR785.13.htm

we are usally to busy working to take lunch they check everyday to see if i have taken lunch they had me sign a piece of paper stating thier lunch policy which included if we dont take lunch they will deduct one hour pay for each lunch not taken

The bottom line is a non-exempt employee (whether you signed a piece of paper or not) who works through their lunch has to be paid for that time. You must be paid for all time worked. However; if you work through your lunch w/o your employer's ok, they would still have to pay you but they can discipline you up to & including firing you for doing so.

And for nonpaid time worked, you would file a claim with the ICA.

thank you:)