employee paybacks
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Under what circumstances are employers allowed to make deductions from an employees pay in order to cover such things as: cash shortages from cash drawers, damages to company property, failure to return company provided tools, equipment, uniforms etc.? What is the best way to secure such paybacks (i.e. have them sign a form agreeing to the payback schedule). What other ways are there to stay legal in situations where the employee has caused some form of financial harm or loss to the company?
Comments
First of all, it is not legal to deduct anything (except mandated taxes) from an employees check without specific, written authorization. That means a specific amount for a specific item. I don't know how that applies to cash drawer shortages, but it works well with items like cell phones, company tools, etc. In these cases, you can specify the equipment by serial number, make and model and the value that will be deducted in the event of loss or failure to return. In all of those situations, be careful that the paycheck does not go below minimum wage, which is a no-no.
As to general loss or financial harm, I think you are out of luck if you think you can go after a paycheck - I would characterize the everyday sorts of situations, such as burning out the motor on the shredder, as the companies cost of doing business. Now if you find a situation where there has been gross negligence or some sort of criminal misconduct, then you can probably pursue the EE (or ex EE) in the courts to seek redress - but NOT THROUGH THE PAYCHECK.
There may be some state laws that spin this general rule of thumb a bit differently - but you now have my opinion.
Hope it helps.
Usually when someone owes, for personal cell phone usage I sit them down with a repayment agreement. How much per week depends......on if I want them to feel it, and remember it, also based on how much they owe. But I always get a signed agreement.
My $0.02 worth,
DJ The Balloonman
when deductions are authorized by the employee in writing to cover insurance premiums, hospital or medical dues, etc.
in essence the only deduction you could make would be if that person was the ONLY person with access to a cash drawer. any other deductions is illegal - unless you have a signed authorization from the employee stating their permission to deduct for unreturned uniforms, tools, etc. otherwise your out of luck - and you can't withhold their paychecks either!
next time for anything of value that the company provides - present the employee before any items are issued - with an authorization for them to sign that states if they do not return these items, the value will be deducted from their final paychecks. some ee's will sign, some will not.