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Employee In-house Charge Accounts

27463662746366 2 Posts
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Need help proving to my boss that it is illegal to apply any employees' payroll monies to an employees' A/R account even if he is behind or not making payments. Can a hold be put on the account? I'm sure retail establishments have paragraphs in their employee handbooks that deal with this subject. Would you mind sharing? Thanks cam
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  • westernwestern 1 Post
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    We have an employee credit policy in our handbook that deals with this and we also have every employee sign a payroll deduction authorization form when hired. This allows to withhold monies on an overdue account or upon termination.
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  • 27463662746366 2 Posts
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    Thanks for taking the time to share you knowledge!
    You've been a help. carol
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  • marcmarc 3,126 Posts
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    This topic comes up frequently and you get some great information by researching the other threads discussing this topic.

    That said, you should not be deducting anything from an EEs check that has not been specifically authorized in writing. This authorization should include an accurate description and an exact amount. Pre signed generic deduction authorizations that do not include this are generally not kosher.

    Also, after authorized deductions are taken into account, the check cannot be below minimum hourly wages.

    You will get some opinions that differ with respect to the pre-authorizations, but if they are not specific as to amount, the generally do not pass muster.
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