Withholding from employee pay

Kenjohnnie · May 2005

Our company is considering a policy of withholding the value of shortages from delivery driver pay whenever they are missing product from their trucks. I have stated that I think this violates the employee's rights and probably several labor laws. What is an employer allowed to do to deter shortages and to hold employees accountable for product in their possession?

dchr9203 · May 2005

Rather than withhold pay, which is a big no no, how about incorporating it as a factor for merit increases/performance eval ratings/bonuses. Another option would be to manage it via the discipinary action process.

Kenjohnnie · May 2005

Thanks for the response. You have suggested exactly what I am thinking.

Don D · May 2005

You might also want to consider paying a third party company to test your employees, pre-hire. Lots of companies have 'honesty tests' or instruments that will reveal a predisposition to minor theft and deception.

SMace · May 2005

You are right, kenjohnnie. Here is an excerpt from TN FLSA:

Deductions

Employers may not withhold, deduct, or divert any part of an employee’s pay except for the following:

¨ Requirements of state or federal law. The law requires that FICA and ESC taxes be deducted.

¨ Other legal deductions authorized in writing by employees — payroll savings, insurance, union dues, etc.

¨ Court-required deductions such as garnishments, child support payments, or debtor’s judgments.

Employers may not withhold the following from employees’ wages:

¨ Bad checks from customers.

¨ Improper use of credit cards by customers.

¨ Customer walk outs.

¨ Cash or inventory shortages.

¨ Damage or breakage costs.

¨ Penalties for violating company policy.

Kenjohnnie · May 2005

Thanks for the great information. Where can I see the information you have excerpted? Thanks again.

Withholding from employee pay

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