Wage Claim

debboyer

Help!

Here is the situation, I have an employee who was caught stealing via his Comdata Card. Needless to say he was terminated with due cause. However, it was determined not to pay him his final wages. I do not agree with this, but the powers to be say he stole from us more than we owe him and although going through litigation they simply refuse to pay his last two weeks of pay.

This ex-employee has filed a Wage Claim and EEOC suit. The refusal still holds. I was hoping that perhaps someone could help me with some firm and real examples of why this is such a bad idea. Cost for attorneys, time spent, just to name a few...

Thanks for your input.

NaeNae55

[url]http://www.dol.gov/whd/regs/compliance/hrg.htm[/url]

This link takes you to the dol website that says, per fsla, that you cannot deduct more than minimum wage. I suggest you search your state dol for state specific laws on final checks.

No employer wants to make the news (or even just public records) as someone who violates wage and hour laws. If your employer is determined to get back at this employee, they should do it through legal channels. Either press charges or sue the employee for reimbursement. Pressing charges will certainly save a future employer from the same headache.

Good luck!

Nae

joannie

Sorry Parothead, but I'm on the side of the powers that be. We have had the same issue a few times in recent history. Our practice is to file a police report, terminate employee and deduct proven theft amounts from final paycheck. Of course, we do have a signed payroll deduction agreement obtained at orientation allowing us to do this type of withholding. We also hold profit sharing and ESOP distributions until case is resolved and restitution is made if the funds absconded are greater than the final paycheck.

Like everything else consistency in application is the key. The employee, by stealing from you, violated your trust and broke the law; while defending against EEOC claims, etc is expensive and time-consuming, sometiems you have to stand on principles.

davids

You need to check your state's wage and hour laws. In my state, it would be illegal to withhold the employee's wages. As your company's actions are a willful violation, under my state's laws, you would be liable for up to triple damages. If that doesn't change the decision of the "powers that be", I guess they suffer the consequences of their actions just as the employee is suffering the consequences of his actions.

Still Need Coffee

What a horrible situation! In IL, you have to abide by the Illinois Wage Payment and Collection Act, and absent express permission (wage withholding agreement, policy stating amount of theft will come from final paycheck), you probably should have paid him and let the courts figure it out.

Now that he's filed the claims, you need to start assembling your documentation - what do your policies say about final pay, acts of theft, etc? Did the employee have to sign some sort of card use agreement that would provide any relieft?

I'm sorry you're having to deal with this - doesn't sound like your "powers that be" listened to your advice!

Good luck with the litigation!

Paul in Cannon Beach

Here in Oregon, deductions from final paychecks must be for the employees benefit or part of a written loan authorization.

I am not aware of an exception for theft.

I would vote to pay the employee his final check and then pursue legal means (good luck) to get your stolen money back.

You are probably going to take a loss here that you can chalk up to "experience".