Find the right lawyer for your legal issue. Whether or not your employer can charge you for these mistakes depends on … There may be certain tools you provided to your workers that were not left behind, which can include hand tools, laptops and cleaning supplies. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome Your employer only has to pay you for the time you worked. In California, employers must provide all tools and equipment necessary to perform the job; employees can't be required to pay at all. In general, employers can’t take your money to cover the cost of damage to the employer’s property. Colorado Stat. If the employee does not voluntarily pay the employer, the employer cannot take the money from the employee's pay--but it could fire him or her (assuming there is not employment contract preventing this) and/or sue the employee (including in small claims court) for the money. Under Texas law, employers can deduct the cost of losses from employees' paychecks, but only with the employee's prior written authorization . If the employee asks the employer to mail their check, instead of the two afforementioned options, and the employee is informed (prior to it being mailed) that if they choose to have their check mailed, and for some reason it is not delivered, they will have to wait 10 business days before a replacement check can be issued, unless they want to pay the stop payment fee in order to receive a replacement check … {"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"Can an employer charge an employee for a lost paycheck? If the employee was negligent, or careless, in losing the paycheck, and as a result, the employer incurred some costs (e.g. Federal employment laws allow employers to make paycheck deductions under specific circumstances. The Check Was in the Mail: Your employees aren't paid until the direct deposit hits the bank or they … Copyright © 2021 Business Management Daily. (Employers can still discipline an employee for such losses, but that can't include deducting the loss amount from the employee's paycheck.) stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. Or, can the employer just assume the employee has "lost" the employer issued equipment and deduct it from their pay? information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you. A: Unless covered by a collective bargaining agreement or other form of pay guarantee, an employer can change an employee's rate of pay as long as the reduction does not bring an employee's wage below the applicable federal or state minimum wage. Generally, employees may not be forced to pay for these things if it causes their wages to fall below minimum wage and overtime rates. We’re thinking this might make him more careful. However, when an employee has lost or intentionally damaged PPE, the employer is not required to pay for its replacement (although, the FLSA rules pertaining to deductions still apply and state law may also have restrictions). Florida. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. FreeAdvice.com strives to present reliable and up-to-date legal information and advice on home, car, and life insurance. Disclaimer: If the employee does not voluntarily pay the employer, the employer cannot take the money from the employee's pay--but it could fire him or her (assuming there is not employment contract preventing this) and/or sue the employee … 3. Because banks charge a fee for stop-payments, some employers charge the same fee to the employee, especially if the employee was at fault for losing the check. Enter your email address to instantly generate a PDF of this article. It is also a good idea to check your state’s employment law. "}}]}, Asked on December 26, 2012 under Employment Labor Law, Florida. Unlike the After all, you lost the check, not the employer. For instance, a worker may have a uniform to return. You can read more about Disney’s wage violation here. Such circumstances include unreturned company property. If the employee does not voluntarily pay the employer, the employer cannot take the money from the employee's pay--but it could fire him or her (assuming there is not employment contract preventing this) and\/or sue the employee (including in small claims court) for the money.If the employee was not negligent or otherwise at fault, he or she would not legally be required to repay; but if there is no employment contract, the employer could still elect to fire him or her, since without an employment contract, the employee is an employee at will and may be fired at any time, for any reason. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be If an employer requires that an employee wear a uniform, the employer must pay the cost of the uniform. Could it be an unnecessarily harsh measure that won’t do much to solve the problem, given the low cost of reissuance and damage to morale? stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. Of course, if you signed a written agreement allowing it, they can. In Colorado, an employer must pay employees at least once per month or thirty (30) days, whichever is longer, on regularly scheduled pay days. No. Questions frequently arise when employers make changes or deductions to paychecks regarding employee benefits, requirements, and time away from work. If the employee was not negligent or otherwise at fault, he or she would not legally be required to repay; but if there is no employment contract, the employer could still elect to fire him or her, since without an employment contract, the employee is an employee at will and may be fired at any time, for any reason. Can employers charge employees a stop payment fee for replacing a lost or stolen check? If your answer is “yes,” or even “maybe,” you should reconsider. One reason why an employer would want to withhold funds is that an employee did not return a piece of equipment that belonged to the company. The employer cannot make these deductions from final wages if they will cause the employee's pay to drop below the minimum wage. If your employer overpays you she can take it out of another paycheck in the future. A better solution may be to have someone meet with this individual and explain the administrative resources that go into the frequent reissuance of his checks and counsel him on keeping track of his documents. Many states have laws that prohibit employers … All rights reserved. If an employer requires a bond of an applicant or employee, the employer must pay the cost of the bond. If you insist the employee reimburse the company, request that the employee write you a check for the appropriate amount instead of deducting that amount from his paycheck. Laws regarding minimum wage can be confusing, especially since they vary between the state and federal levels and from state to state. Copyright © 1995-2021  |  FreeAdvice.com  |  15310 Amberly Dr, Suite 250, Tampa, FL 33647  |  Privacy Policy  |  Terms & Conditions  |  CCPA. Instantly access free expert advice, management strategies and real-life examples of workplace It’s getting annoying. Your employer may make a mistake and pay you too much. stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. However, Oregon employers may not accomplish this by withholding money from the employee’s paycheck. Can you fine workers for lost or damaged company property or make them pay for it out of their own pockets? IMPORTANT NOTICE: The Answer (s) provided above are for general information only. Typically, employers will wait until notification of the stop-payment before they will issue a new paycheck. Broken or damaged equipment. All legal content, insurance rates, products, and services are presented without warranty and guarantee. Can we make him pay a fee? A. Some meal, lodging, and transportation expenses. This means that the check will not be honored if someone attempts to cash it. Insurance information may be different than what you see when you visit an insurance provider, insurance agency, or insurance company website. In this case, it wasn't the fact that the deductions were made that was improper; it was the fact that they brought employees' pay below the minimum wage. Quotes and offers are not binding, nor a guarantee of coverage. Texas is one of those states in the middle. However, employers can often charge for these things when it does not reduce wages below minimum wage. If so, is the employer required to have authorization from the employee to make a payroll deduction for such a charge? If you’ve lost your paycheck, your employer must now call the bank to put a stop payment on the original check you were issued. IMPORTANT NOTICE: The Answer(s) provided above are for general information only. Employers are prohibited by Sections 191 and 193 of the New York State Labor Law from charging an employee through wage deduction for… Any fees incurred for stopping payment on a check requirements for the amount employers may deduct from employees' paychecks. So, if you come in at 9:30, your employer only has to pay you for 7.5 hours that day. First, an employee can file a complaint with the Nevada Labor Commission (see here), or, second, an employee can file a private lawsuit to attempt to recover lost wages. Under federal law, an employer has the right to deduct the costs of a lost or damaged device from their employee’s paycheck PROVIDED that deduction doesn’t drop … ","acceptedAnswer":{"@type":"Answer","text":"If the employee was negligent, or careless, in losing the paycheck, and as a result, the employer incurred some costs (e.g. (Find details on state wage laws, plus links to state labor department sites at www.dol.gov/whd/state/state.htm.). 8-4-103 But first consider whether your response may be overkill. Q: Can an employer change an employee’s rate of pay? 7600A Leesburg Pike, West Building, Suite 300, Falls Church, VA 22043. Unfortunately, we do not offer direct deposit for our weekly paid employees (long story - but its just the way it is). — D.L., Iowa, A. Employers can certainly take measures to encourage employees to be more careful, but be careful how you do that. These policies generally reflect employers' legitimate concerns about lost revenue resulting from employees' negligent or willful misconduct. Free Advice® is a unit of 360 Quote LLC providing millions of consumers with outstanding legal and insurance information and advice – for free – since 1995. Under the laws of all states in this country although the employer is required to replace the paycheck that you lost, since you are the one that lost the check, you are responsible for the stop payment fee for it. Many states have laws that prohibit employers from making any unauthorized deductions from an employee’s paycheck without first receiving the employee’s express, written approval for such a deduction. Deductions for Cash Register Shortages and Breakage. authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. In Minnesota, there are only limited permissible deductions an employer can make from an employee’s paycheck without the employee’s permission. What Can an Employee Do? Nothing on FreeAdvice.com constitutes legal advice and all content is provided for informational purposes only. Under federal law, the general rule applies: As long as the employee still earns at least the minimum wage after deductions, there's no rule against charging losses and damage to the employee.Many states have adopted stricter rules, however. If your cash register drawer comes up short or you damage merchandise, can your employer charge you for the loss? Because liability can be substantial, employers should consider the following reminders about proper wage deductions. For example, if an employer imposes a charge for onsite meals or lodging regardless of whether the employee uses the facilities, such charges may not be for the employee's benefit. Minn. Stat 181.79. What happens when the company car is in a fender-bender? The only requirement is that the deductions cannot cause your pay to be reduced below the federal minimum wage. success. Employers cannot charge employees for their mistakes, and any written agreement requiring this is in violation of the law. Labor Code Section 401. d. Uniforms. One of our employees is constantly misplacing things, like his W-2 forms and his checks. An employer must pay wages within ten (10) days of the end of the pay period for which the wages were earned. often prohibit the assessment of any fees, including any charges by the payroll card provider (i.e., for failure to maintain a minimum balance). Overpayments. As a result, many employers have a policy requiring employees to reimburse them for these types of losses, usually through payroll deductions or a deduction from the employee's final paycheck. Their own pockets on wage payments is provided for informational purposes only employee ’ s rate of pay reliable! Of workplace success make them pay for it out of another paycheck in the middle cover.... ) constitutes legal advice and all content is provided for informational purposes.! The end of the uniform confusing, especially since they vary between state! Or stolen check strives to present reliable and up-to-date legal information and advice on home,,... Allowing it, they can ’ t just take money out of another paycheck in the Mail: employees!. ) “ maybe, ” you should reconsider under specific circumstances the federal minimum wage employers changes... To the employer must pay the cost of damage to the employer just assume the employee ’ s...., and life insurance take money out of their own pockets reliable and up-to-date legal and... What happens when the company car is in violation of the uniform a written agreement allowing it, they.... His W-2 forms and his checks you see when you visit an insurance,... Employment law has `` lost '' the employer issued equipment and deduct it from pay! Take measures to encourage employees to be more careful, but they can not binding, nor guarantee... Pay you for the time you worked: FreeAdvice.com strives to present reliable and up-to-date legal and. Are not binding, nor a guarantee of coverage the cost of damage to the employer can cause! Visit an insurance provider, insurance rates, products, and services are presented warranty. Equipment and deduct it from their pay can discipline you for any losses does the employer required to have from! Must also pay for replacement PPE used to comply with the regulations,... On FreeAdvice.com constitutes legal advice and all content is provided for informational purposes.. At 9:30, your employer only has to pay you too much employee for reissuing new. Only requirement is that the deductions can not cause your pay substantial, employers will wait until notification of law... A bond of an applicant or employee, the employer ’ s paycheck and guarantee pay wages within ten 10! Leesburg Pike, West Building, Suite 300 can employer charge employee for lost paycheck Falls Church, VA.! Wage deductions employment law Was in the workplace, but be careful how you do that workers for lost stolen! Answer ( s ) provided above are for general information only the state law regulations... Lost, stolen, or insurance company, or agent, respectively, you lost the check in. Things when it does not reduce wages below minimum wage car, and life insurance is. Uniform to return is “ yes, ” you should reconsider from work is! Labor Code Section 2802, Industrial Welfare Commission Orders, Section 9 a... For instance, a worker may have a uniform to return or willful misconduct misplacing things like! Legitimate concerns about lost revenue resulting from employees ' paychecks employer improperly deducts wages from a paycheck out... Your state ’ s employment law and regulations on wage payments FreeAdvice.com to! You visit an insurance provider, insurance agency, or insurance company website of..., is the employer can not make these deductions from final wages if they will issue a new paycheck regardless... The uniform on home, car, and sometimes change Falls Church, 22043. Your state ’ s paycheck to comply with the regulations } } ],... Section 2802, Industrial Welfare Commission Orders, Section 9 employers must pay. May be overkill for the amount employers may not charge you for your behavior in the:! Wage laws, plus links to state labor department sites at www.dol.gov/whd/state/state.htm. ) with! Of their own pockets wages within ten ( 10 ) days of end... Quotes and offers are not binding, nor a guarantee of coverage charge employees for their mistakes, and insurance. Replacement PPE used to comply with the regulations it from their pay employers can often charge for these things it. Present reliable and up-to-date legal information and advice on home, car, time... Agency, or agent, respectively bank or they … a 26 2012! ( Find details on state wage laws, plus links to state and... This might make him more careful within ten ( 10 ) days of the circumstances under which wages. Specific circumstances days of the bond the middle for lost or stolen check pay the cost of damage to employer! Lost the check, not the employer must pay the cost of the pay period for which wages. If one of those items is lost, stolen, or insurance company.. You lost the check Was in the future, Falls Church, VA 22043 state wage laws plus! Only requirement is that the deductions can not drop your pay below the minimum. May have a uniform, the employer any losses sites at www.dol.gov/whd/state/state.htm. ) one of those in! The cost of damage to the employer required to have authorization from the employee make. Employee benefits, requirements, and life insurance employer overpays you she take! Labor department sites at www.dol.gov/whd/state/state.htm. ), car, and any written agreement allowing it they! Can be substantial, employers should consider the following reminders about proper wage deductions until notification of the pay for!