ee damages/destroyes equipment - who pays?

jmaglic · January 2004

I have to write a question/answer article for the BBB regarding whether an employer can make an employee pay for lost or damaged equipment. I am having trouble finding any related articles/sources.

I am in Ohio and know that O.R.C. Section 4113.19 prohibits garnishing wages unless an express contract is in place. That is all I can find. There is not even any applicable case law.

Can anyone help me? Thanks!

deniseE · January 2004

A lot will depend on the company policies. Individual state law may dictate how the employer can collect, but ultimately, the work policies will frame how much responsibility an EE has for destroyed equipment. The policy may also make exception for accidents and treat intentional destruction differently.

Crout · January 2004

In PA we can't make a deduction out of a paycheck without the specific consent of the employee, unless the deduction is mandated by law. I'm guessing that Ohio is the same. So if we're faced with a scenario where an employee loses or damages property willfully we can use the discipline process, part of which can be some kind of restitution, but ONLY if the employee agrees.

Shadowfax · January 2004

I sure don't know Oh law, but I think you will find, as a general, if not universal rule, an employer can stand in no better position to collect a debt than any other creditor. That means, if the emp/ee signs something acknowledging the damage AND authorizing the deduction from pay, you may do so, so long as you do not violate state law with regard to amount left over after garnishmment. Otherwise, you will have to sue and get a judgement jjust like anyone else, then go through the appropriate garnishm,ent procedures.

marc · January 2004

We assign cell phones to certain EEs. The EEs acknowledge upfront the value of the Cell phone and that it is in their care and control and they will be responsible for the cost of a replacement if the cell phone is damaged, lost, stolen, etc. Included in the body of the form is a payroll deduction authorization for the value of the phone.

As a note, if you do have voluntary authorization for any type of payroll deduction signed by the EE, you still cannot reduce their wages below minimum wage.

So if the EE damaged or destroyed something like a forklift, you will have a difficult time getting the value out of a paycheck.

In my opinion the accidental damage of equipment is up to the company to cover. That's is what training and insurance are for. Make sure they understand how to operate the equipment and that you have provided a safe environment for them to do so, and then when all else fails and the accident happens, make the insurance claims.

Willful destruction would go through the disciplinary process and perhaps through the civil and criminal justice system, but you cannot just deduct amounts without their specific authorization.

ee damages/destroyes equipment - who pays?

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