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company property

lrobblrobb 67 Posts
in HR & Employment Law Vote Up0Vote Down
how do you handle issueing company property such as laptops, cell phones etc.? do you have the employee sign that they are resposible for the equipment or?
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  • 6 Comments sorted by Votes Date Added
  • Peyton Irby MSPeyton Irby MS 139 Posts
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    Most employers require an acknowledgment of responsibility. Some have a repayment clause for lost or damaged equipment and everyone I've seen has a clause holding the final check until the equipment is returned. Some employers "sell" the hardware through payroll deduction, generally at below cost.
    Peyton Irby
    Editor, Mississippi Employment Law Letter
    Watkins Ludlam Winter & Stennis, P.A.
    (601) 949-4810
    [email]pirby@watkinsludlam.com[/email]
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  • Myrna MinkoffMyrna Minkoff 37 Posts
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    I was not aware that you could hold a final paycheck for damaging or failing to return company property - even with a written agreement. Is that not an FLSA violation? Moreover, many states specifically limit the type of deductions that can be made even with a written agreement.
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  • ACU FrankACU Frank 2,188 Posts
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    The amount held cannot take the employee below minimum wage.
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  • davidsdavids 427 Posts
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    You need to check your particular state's wage & hour laws. In my state, you cannot withhold or deduct the cost of loss or damge to equipment from an employee's pay unless the employee specifically authorizes it.
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  • Peyton Irby MSPeyton Irby MS 139 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 05-08-07 AT 10:41AM (CST) by Brad Forrister (admin)[/font][br][br]DavidS is correct as there are varying state laws and regulations on withholding from an employee's check for equipment entrusted to the employee that is not returned.
    If the equipment is employer specific (best example is a shirt with company logo), a deduction is not allowed. If it is an item the employee can use in their personal life or in other business pursuits, such as a laptop, some states, including MS, allow recoupment of the actual value. It is treated the same as a cash loan as the employee has received the value of the item as part of their compensation.
    There may be a dispute as to the value so it is best to have a written agreement of the value. As mentioned in my earlier post, many employers "sell" the equipment through payroll deduction and then it becomes the employee's property.
    Depending on the "value" assigned, most employers simply write off the loss rather than spend time arguing over the value or the deduction.
    You should always check your particular state laws when the issue arises.
    It is not an authorized deduction simply because the employee damaged your equipment. That issue should be handled through the discipline process.

    Peyton Irby
    Editor, Mississippi Employment Law Letter
    Watkins Ludlam Winter & Stennis, P.A.
    (601) 949-4810
    [email]pirby@watkinsludlam.com[/email]
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  • Brad ForristerBrad Forrister 297 Posts
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    Due to a glitch in the system, Peyton Irby's message got posted multiple times. I combined the responses. Hope this clears up any confusion.

    Brad Forrister
    VP/Content
    M. Lee Smith Publishers


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