Handbook Acknowledgment OK for Payroll Deductions?

HRQ

In "She quit and owes us money", Marc from NV said "Any deduction from the paycheck must be specifically authorized. The handbook receipt and the policy therein are not enough. The authorization is for a specific deduction and amount or a series of deductions and amounts."

In our handbook acknowledgment, we include a statement that if an employee terminates before completing one calendar year of employment, we will automatically payroll deduct the expense of TB tests, fingerprinting, etc. (childcare licensing requirements) from the final paycheck, if the company paid for these fees in the first place. The statement includes the specific amount for each item.

Based on Marc's post, I now wonder if just using the handbook acknowledgment as authorization to payroll deduct these fees is appropriate. Sounds like "no". Did I misunderstand?

ray a

I'm concerned, too. Our employee manual states: "In the event that your employment with the company ends, you will be liable to repay the compnay for any vacation time taken which was not earned through accrual. Repayment will be takenfrom your final paycheck". A similar statement is in the Personal/Sick section.

I did some research and could not find a definitive answer. Could Marc be correct for NV, but other states may have different rules?

Shadowfax

Handbook language is not enough. E/er can make a wage assignment for e/ee if 1)payment is made to a third party 2)e/er does not receive any benefit 3) arrangement is not made to evade the law. Your deduct is not for third party, and, it benefits the e/er, and is therefore not permissable. If you could get specific written auth for the deduct (specific amt, payable to e/er, reason for payment) youstill must be sure the amount left over to e/ee does not cause wage paid to fall below min. Anytime e/er is beneficiary of deduct, must have written consent for each payment. Anything else is an involuntary assignment, which is also known as garnishment, and can only be done with a court order. E/er is in no better position than any other creditor. Oh, and the only permissable deducts that may cause a wage to fall below min is meals/lodging, transportation,fuel exp, e/ee benefit deductions(insuarance, pension,etc).

HRQ

Thanks, Shadowfax. This gives me yet another topic to consider during handbook review this year.

It would be easy to add the payroll deduct statement to our voluntary resignation form (signed by the employee) with fill-in-the-blank sections for the amounts to be deducted. Maybe this will get our school Directors to use them more often!

WOCO Frank

I don't go into my defiant mode often, but...

All my new hires sign a statement on payroll deductions that ends with "I understand that the Company has the right to collect any outstanding debts owed the Company through payroll deduction."

I cite that statement every week, and will continue to rely on it until state or federal authorities tell me otherwise.

Shadowfax

As Judge MacGruder said, 'no harm in askin', but first time e/ee complains to DOL you'll be told the language you rely on isn't sufficient. Mind you I do some things I know arn't completely enforceable, although always at least morally correct, but, understanding if ever called out, I probably can't win either administratively or in court.