Company Property

HRSPD

I have a former employee who refuses to return company property. I sent a letter via ups to her home asking to return the property by deadline or the company would be forced to deduct that amount from her final check to replace it. I received a call from my corporate payroll rep stating that it would be illegal to deduct this amount from her regular earnings-do any of you have anything to add or suggestions on actions we can take to retrieve the property. This was an employee who was only employed for 3-4 weeks, then pulled a no call/no show. Corporate payroll is saying that the letter that was signed for is not sufficient, that we must have a signature from her stating that it's okay to deduct an x amount if property is not returned upon termination. We had previously called the employee several times and she will not return my calls. Any advice...

marc

This has become an illegal conversion - turn in a stolen property report to your local gendarmes and let them recover the property. Let your tax dollars help you out.

LindaS

What is the company property worth? Is it worth filing a small claims action against? I had the same situation with an employee who refused to return his uniforms and we were charged for them - about $420.00 worth. I went to the courthouse and filed a small claims action (cost about $40.00) and when the ex-ee received the notification of the pending court date, he contacted me immediately and returned the uniforms. Yes, it cost some money but not the $420.00 it would have had he not returned them.

As a side note, I agree with Corporate Payroll's stance on not deducting without a signed authorization stating the specific amount.

HRSPD

It's a 2-way pager with a total value of $170-plus she got off having service to the pager for 1 month before my manager notified me! This is a lesson to be learned on my end, the employee came referred by a director in the facility, she said "see you Monday" and never returned. I would have thought that the letter sent and the UPS confirmation of receipt would cover us in a situation where she would want to suit, because of the fact that the letter was sent and signed for and still she did not contact our office to object. Is it worth for me filing a claim on the "unreturned" property? No but I have a boss who does!

Don D

I also agree with your corporate payroll person. She's on her toes and is correct. You should have these understandings signed off on up front, anytime property of value is issued, or advances are made or other things of this nature occur. Lot's of us DO deduct from final pay for things like this, but that doesn't make it legal. About all you can do now is hassle the ex-employee by having payroll send the check directly to you and you make him come see you to pick it up.

Balloonman

Don is right.......again, helps to have the signed agreement up front. That being said, have the phone turned off, report it to the police as stolen. I bet she returns it pretty quickly.
My $0.02 worth.
DJ The Balloonman

HRSPD

Hi,

Just wanted to thank you all for your advice and also give you some interesting news!

I digged in a little more with the AZ DOL and they stated that under AZ Law, the UPS delivered letter to her home and acknowledgment that someone received it is sufficient documentation. They also said that it is okay to make deductions if documentation has been placed as long as minimum wage is still met after deductions. So, it happens that after 2 days that I made the call to the AZ DOL the employee mailed in the pager so there was no need make deductions. It was a good research practice though!

JM in ATL

I just wanted to comment on having payroll send HR the final paycheck for pick-up, not to start a debate or detailed discussion.

In some states, such as New York, NY law says that the final paycheck must be delivered as the employee instructed all other pay be delivered.

Meaning, if when the employee was employed his paychecks were direct deposit, then that final pay check would need to be direct deposit as well, instead of a live check to be picked up.

Unless of course the ee gave other directions before his exit.

Just wanted to make a note of that, seeing that many state laws vary about final pay.

Glad to hear that you got your phone back.