deductions from paycheck

System

We would like to implement a new policy for our commissioned employees who receive a "draw" every pay period. When an employee leaves the company, if their draw is in the negative, (meaning we've overpaid them based upon the commission they've earned),we would like to deduct that amount from any unused and accrued vacation which is traditionally paid out on their last check. Any ideas on how to word this policy? Not sure where to begin.

Don D

You're in Georgia and I believe you are safe in using this Mississippi policy quote. We do: If your employment terminates for any reason, your final expense account summary will be carefully audited against any outstanding monies or materials that you might owe the company. Any due amount, including payout of any unused vacation time, will be reduced by any amount you might owe the company and your final check will so reflect. You will also hear much contrary advice from HR persons in other states. Run the final policy statement by a (Georgia) attorney.

moneyman

[font size="1" color="#FF0000"]LAST EDITED ON 09-06-02 AT 06:55AM (CST)[/font][p]I think I would include with this policy statement a "received and read acknowledgement" signed by the employee. So, not only do you have a policy but you would have the employee's signature on file that they have received and read this policy. We make have a similar one and make it part of the new hire package. We also have the employee sign a statement prior to their last paycheck that outlines what they are getting paid for at their last pay. This would include adjustments for Paid Out Vacation or Reductions for reimbursements, so they acknowledge that they have been paid for accrued vacation time or reimburse for overpaid benefits. We have had trouble only once when an employee did NOT want to sign this statement and we felt that it was better to pay for the hours worked without making the deductions even though we had the new hire signed statement. This action made the employee "ineligible for rehire". We have not yet had to make a reference for this person, but I have been told that if the phrase "ineligible for rehire" was not good enough for the inquiry that we should say that it was for violation of company policy and let it go at that. (Hopefully this will never come up because I am uncomfortable with the explanation.)