September 17 Tip of the Week

“Wage Deductions”

Although it can seem tempting to take deductions from a departing employee’s final wages for unreturned uniforms or equipment, most states do not allow such a deduction to be made absent an employee express written consent.  If the employee has not returned company property by the deadline specified in your policies and refuses to allow you deduct the cost from final pay, employers should first start with a written demand letter to the employee giving the employee a timeline and a prepaid shipping label to return any remaining company property.  If the departed employee misses the deadline, then it is up to each company to weight the benefit versus the cost of taking further legal action such as engaging an attorney to write a demand letter or initiating a small claims court action.  

If you are having a hard time getting company property back from a ex-employee, let our attorneys know and we can explain your options and try to help you recover the items. With an affordable subscription to myHRcounsel, you can consult with our attorneys before deciding to make any rash decisions regarding payroll deductions or withholding a final paycheck.