Deductions for Damage Company Property

SLPaulson · April 2005

California Labor Law is pretty rigid. Can we deduct from an employee's salary for damage he inflicted to the Company's product? (EE damaged a door to a cabinet, because he was mad, that was to be delivered to a home site)

Gillian3 · April 2005

Probably. The key is whether the damage is something that would be considered a cost of doing business or willful on the part of the employee. Sounds like the latter.

marc · April 2005

Any deductions from an EEs paycheck, except for required withholdings for taxes, fica, sdi must be approved in writing, with specific amounts indicated therein, and signed by the EE.

If the EE refuses to sign said document, you may not deduct - but you can and should discipline for this type of behavior up to and including termination.

Don D · April 2005

I would deduct it from his next check anyway. If you get cited, tell them "I didn't unnerstand the language." It works for the guvnah.

Gillian3 · April 2005

[font size="1" color="#FF0000"]LAST EDITED ON 04-22-05 AT 12:42PM (CST)[/font][br][br]Both points are correct. California regs allow deductions for willful damage. It is also proper practice to get employee approval for deductions. The employee would probably not approve, so there is going to be a violation of something. If it were me, I would deduct and deal with any challenge at a later date. The challenge will be based on "willful" vs. an "unfortunate mistake". The clearer the employer is in proving the "willful" the more successful the defense. If there is a challenge and a hearing the hearing officer will uphold the right of the employer to make the deduction without the employees permission if he or she agrees that ithe act was "willful".

HR in CA · April 2005

Do yourself a favor, call the state labor commissioners office. I have been able to run situations by them, and they usually will give you an answer based on the information you provided.

Unless the employee has admitted the damage was caused by his lack of temper control and will put it in writing, and allow you to deduct it from his check, it could turn into a he said/he said. Which in this states almost always means the employer loses!

And if you get all that in writing, be aware you will run into trouble if the deduction causes the employee to earn less than minimum wage.

SLPaulson · April 2005

Thanks for all the advise - I guess it comes down to the "legal" terminology of willful vs ordinary (simple) negligence. He will definitely be disciplined -

Do you have the phone number for the state labor commission?

Of course, California Labor Law Book, page 381 does talk about Simple Negligence and the Employer bearing the cost of the loss -

Gillian3 · April 2005

Look for the state office of Department of Industrial Relations, then Department of Labor Standards Enforcement. they have offices in the major city areas. I think that the website is [url]www.dsle.gov.ca[/url]

HR in CA · April 2005

(916) 263-1811, I am in the Sacramento area, this is my local office.

E Wart · April 2005

You are right about CA. I would be VERY careful in deducting anything but WOULD severely discipline them (maybe even suspension.)
Several years ago we had an employee in CA who we terminated for some pretty good reasons. They had lap top, company car, and an expense advance. We called the state and were told we couldn't deduct anything from her check... even though we had something signed saying she would pay back/return the items. [We didn't deduct, but we did 'illegally' withhold a check until some of this was returned.]
Also, you have to make sure that the employee is paid at least minimum wage when you deduct and that you have something signed by them. If the dollars aren't much, I would just do the discipline and make it severe with a statement that if it happens again they will be terminated.

E Wart

Deductions for Damage Company Property

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