Can I deduct damage equipment from employee pay?

AzraCr · March 2013

We are a 1099 contractor medical diagnostic company, and i would like to know if it is legal for us to deduct an amount from their payheck if they cause damage on any of our equipmet. We have held meeting as far that they need to be a little bit more careful when haneling them, and unfortunatelly it has come to the point where we need to pay about $800 to fix the damage they had caused within another office we work with.

Sharon McKnight SPHR · March 2013

[quote=AzraCr;724942]We are a 1099 contractor medical diagnostic company, and i would like to know if it is legal for us to deduct an amount from their payheck if they cause damage on any of our equipmet. We have held meeting as far that they need to be a little bit more careful when haneling them, and unfortunatelly it has come to the point where we need to pay about $800 to fix the damage they had caused within another office we work with.[/quote]

Hi,

Your first post! Welcome to the Forum. :welcome:

Sharon

Still Need Coffee · March 2013

My question would be, what do you have in writing? Many companies have documents that are signed when an employee is assigned/checks out equipment. Also, what does your handbook say?

Many states do not allow deductions to pay unless you've got it in writing.

FunHRBanker · March 2013

I believe you would have to have a signed agreement after the damage, but before the deduction in order to make the deduction. You cannot get a blanket agreement when the employee is hired to make deductions.

briansch1 · March 2013

This is, in may cases, a State specific issue. Most states have specific guidelines relating to pay and deductions. If a state does not have any guidelines you would default to the federal guidelines.

Wanda Nardone · April 2013

No your not allowed to deduct from wages

jdarrough · April 2013

I agree with briansch1 above. The only addition I have is that some state laws only allow deductions when the employee quits or is terminated.

Sharon McKnight SPHR · April 2013

[quote=Wanda Nardone;725037]No your not allowed to deduct from wages[/quote]

Wanda,

Your first post! Welcome to the Forum. :welcome:

Sharon

Nevada HR · April 2013

I found this:

Federal Law – When the employee in question is a non-exempt employee, the general rule under Fair Labor Standards Act (FLSA) is that an employer may make deductions from an employee’s wages for things such as property damage, cash shortages, tools, required uniforms, etc., so long as the deduction does not take the employee below minimum wage for the workweek.

It is definitely a good idea to have a written policy notifying employees that this will happen. I also read that some states require a written agreement and Mississippi requires that the employee receive a full paycheck every other payday, or something like it.

Can I deduct damage equipment from employee pay?

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