Company Property Damage Continuously

Lori1

I was just asked by one of my branch managers if he could deduct the cost of the 5th cell phone from one of his employees paychecks. The manager states that this is the 5th Nextel Cell phone he has had to give this employee and the employee continuously loses, breaks, or damages them. Does anyone know if you can deduct the cost of company property from an employee's paycheck. Thanks

hrbanker

Federal law prohibits deductions from pay if they would reduce the employee's pay to below minimum wage or if they reduce overtime pay. Most states have laws that limit deductions to those allowed by federal law or court order, or to those which are authorized in writing by the employee.

I would suggest you check your state laws and your company's written policy. You may not be able to deduct the cost of the phones from pay, but unless you have a very lenient policy, you can probably discipline the employee for distroying company property. If it were my employee, they would have had a written warning with the third phone and been on suspension with the next one.

Pork

Lori1: In our company the first pager is provided by the company for which they sign and acknowledge that a replacement pager will cost $XXX. They are informed that they can pay cash or do a payroll deduction. If it was not their fault for the loss we will buy a 2nd one and eat the cost. There has not be a 2nd one bought by the company. There have been several bought by the ee and put into service as a replacement. 3rd ones do not get lost!!! The answer is: yes, but you must have told everyone before the fact and not after the fact. 18 wheel drivers who wreck or destroy company property in an "at fault" accident are terminated! No second chance to wreck or lose and another $0llar! We don't go that far with pagers but the concept is the same. Pork

Margaret Morford

Check your state law as HR Banker recommends. When the employee is issued the pager, have him/her sign a document that acknowledges the value of the pager and authorizes your company to deduct that amount "from any monies due and owing to the employee, including, but not limited to, wages, commissions, vacation pay, etc." If they lose it, simply replace it and deduct the cost from their next paycheck(s). If they don't return it when they leave the company or they return it broken, make the deduction from all monies owe them. Make sure they get paid minimum wage each time as HR Banker points out.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
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