Preventing loss/damage to IT equipment

kmckinney · October 2007

Recently, our IT Department has had to replace several cell phones and one laptop due to employees being careless with their company issued equipment. Management is not happy. We don't have a policy in place about how such replacements are dealt with and would like to create one. Obviously, if equipment wears out or becomes obsolete, we would replace it at no cost. But, if an employee needs a new phone, or whatever, because they are careless, we are considering having them pay a portion of the replacement. What kind of policies do other companies use? Any feedback would be appreciated.

Thanks!

GoPatsNH · October 2007

I would make sure, before crafting this type of policy, that you look at your state's laws on pay deductions. Some states have laws stating that employer can't deduct from employee's pay for the cost of equipment. Not sure if this would actually be a "pay deduction" but I would definitely look into it first.

LadyAnn · October 2007

This is one reason why many companies have gone to requiring the employee to furnish their own cell phone and the company will reimburse you for the usage. It puts it on the employee to replace the items.

HRgsf · October 2007

We have employees use their personal cell phones and (depending on the plan) either reimburse for business-related calls or pay a portion of the monthly fees. We've never had to reimburse for replacement phones -- at least not yet!

TXHRGuy · November 2007

We provide grossed up bonus compensation for cell phones.

States vary widely in terms of what types of things you can deduct for and what is required in order to make a deduction. Consult counsel or the relevant state agency before deducting a penny. Willful failure to pay can have harsh penalties. In Texas, a company can be required to have an average payroll's worth of money held in escrow by the state in addition to fines.

Preventing loss/damage to IT equipment

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