Deduct from last paycheck non-returned company property

Bethgg

We want to add a page with signature required to our Employee Manual stating we will deduct $xx.xx amount of dollars from previous employees last paycheck for failing to return keys issued. If the keys are not returned, we are forced to change the locks, and distribute new keys to all parties. Can we legally do this?

OR, have a separate document not part of the handbook?

Paul in Cannon Beach

Beth,

Welcome to the forum! Here in Oregon, you could not make the kind of deduction you are proposing. Generally, deductions from paychecks must be for the employee's benefit.

I checked your state of Delaware (the first state) and found similar restrictions for deducting for lost or unreturned property, damage, inventory shortages, etc.

Here is the link: [url]http://www.delawareworks.com/industrialaffairs/services/LaborLawEnforcementInfo.shtml#ll7[/url]

I think you can legally tell an employee "I have your final paycheck in my office. When you come by to pick it up, could you bring in all of your keys, company laptop, etc."

However, if the employee doesnt bring in the keys or equipment, you still have to give the paycheck.

Bethgg

Thanks for the welcome and information and link.
I also called the Delaware DOL - they stated if I don't deduct from paycheck but have a separate document employee signs upon hire, we can either have them return company property, or pay a fee and be able to turn it over the collections.

Thanks again,

Beth

pork1

[font size="1" color="#FF0000"]LAST EDITED ON 03-16-06 AT 12:20PM (CST)[/font][br][br]BETHGG: I, too, would not put this statement in the Employee Handbook; however, this statement can be printed in a signed letter of offer document. We even write that the "cost of a Drug test" will be paid for by the company and should the individual choose to leave or we the company choose to cancel the employer/employee relationship within 90 days that the $35.00 will be collected from his/her last pay check. The same is written for the collection of fees and cost of his/her employement like keys/tools/uniforms/, which must be issued to the ee so that the ee can get to doing work. His/her signature of acceptance of these issues as a part of accepting employment automatically sets up an accounts payable account.

This has worked for us and we have never been challenge by an x-employee. I would ready to cave-in on this process, when faced by a very strong x-employee, who has some reasonable excuse or response to his/her signed document where the ee has alread agreed to your company procedures.

This is one that you will need legal advise for your state.

PORK

HRCalico

Beth, contrary to what I have seen on this forum, I had two Nebraska labor law att'ys tell me that I can deduct with something similar to what you propose (they have had it stand up in court). Not sure about your state, though. If you attend any training with a your-state-specific labor law att'y presenter, get your money's worth and ask! What my guys suggested was have the "I have read and understand policies" and signature, and then I have them initial "I authorize XYZ Co to deduct funds owed by me to XYZ Co from my paycheck." on the same sheet.

Be forewarned - depending on your culture and relationship between the "grunts" and management, your current employees may need some talking to and explaining on this. Plan it carefully if you proceed.

Paul in Cannon Beach

It wasn't easy but I found this online. Its 48-1230 of the Wage Payment & Collection act which can be found here: [url]http://www.dol.state.ne.us/legallaws/toc.pdf[/url]

"An employer may deduct, withhold, or divert a portion of an employee's wages only when the employer is required to or may do so by state or federal law or by order of a court of competent jurisdiction or the employer has written agreement with the employee to deduct, withhold, or divert."

So it would appear (if I have found the correct information) that Nebraska sets no limitations on employee deductions other than to require authorization from the employee.

That is not the case in Oregon and apparently not the case for Delaware.

ray a

In NY you can only deduct up to 10% of the last pay check. I found out the hard way.

Paul in Cannon Beach

Ray - You have reminded me of one of my favorite "De-motivational" posters that reads:

"Mistakes: It could be that the purpose of your life is only to serve as a warning to others."

Accompanied by a beautiful color photo of a sinking ship.

Here is the link: [url]http://www.despair.com/mis24x30prin.html[/url]

ray a

Oh thanks, Paul. You're saying I lead by poor example? /:)

Paul in Cannon Beach

No, I am just trying to find the silver lining for you. x:D