Therefore, if you only earn minimum wage, your employer cannot charge you for any losses. IMPORTANT NOTICE: The Answer (s) provided above are for general information only. One reason why an employer would want to withhold funds is that an employee did not return a piece of equipment that belonged to the company. If you’ve lost your paycheck, your employer must now call the bank to put a stop payment on the original check you were issued. Whether or not your employer can charge you for these mistakes depends on … An employer must pay wages within ten (10) days of the end of the pay period for which the wages were earned. These policies generally reflect employers' legitimate concerns about lost revenue resulting from employees' negligent or willful misconduct. Of course, if you signed a written agreement allowing it, they can. — D.L., Iowa, A. Or, can the employer just assume the employee has "lost" the employer issued equipment and deduct it from their pay? The only limitation is that these deductions cannot drop your pay below the federal minimum wage. If the employee was not negligent or otherwise at fault, he or she would not legally be required to repay; but if there is no employment contract, the employer could still elect to fire him or her, since without an employment contract, the employee is an employee at will and may be fired at any time, for any reason. Free Advice® is a unit of 360 Quote LLC providing millions of consumers with outstanding legal and insurance information and advice – for free – since 1995. stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. No. In this case, it wasn't the fact that the deductions were made that was improper; it was the fact that they brought employees' pay below the minimum wage. We’re thinking this might make him more careful. But first consider whether your response may be overkill. Many states have laws that prohibit employers … Typically, employers will wait until notification of the stop-payment before they will issue a new paycheck. If the employee was negligent, or careless, in losing the paycheck, and as a result, the employer incurred some costs (e.g. Nothing on FreeAdvice.com constitutes legal advice and all content is provided for informational purposes only. Many employers issue laptops or smartphones to their employees. It’s getting annoying. requirements for the amount employers may deduct from employees' paychecks. IMPORTANT NOTICE: The Answer(s) provided above are for general information only. Broken or damaged equipment. A better solution may be to have someone meet with this individual and explain the administrative resources that go into the frequent reissuance of his checks and counsel him on keeping track of his documents. The employer cannot make these deductions from final wages if they will cause the employee's pay to drop below the minimum wage. or an attorney's conclusion. Employers cannot charge employees for their mistakes, and any written agreement requiring this is in violation of the law. Copyright © 2021 Business Management Daily. Can we make him pay a fee? Labor Code Section 401. d. Uniforms. An employee has two primary options when an employer improperly deducts wages from a paycheck. In Colorado, an employer must pay employees at least once per month or thirty (30) days, whichever is longer, on regularly scheduled pay days. Minn. Stat 181.79. success. Unfortunately, we do not offer direct deposit for our weekly paid employees (long story - but its just the way it is). There may be certain tools you provided to your workers that were not left behind, which can include hand tools, laptops and cleaning supplies. Under federal law, an employer has the right to deduct the costs of a lost or damaged device from their employee’s paycheck PROVIDED that deduction doesn’t drop … What happens when the company car is in a fender-bender? One of our employees has lost her paycheck 3 times this year - she is paid weekly. Laws regarding minimum wage can be confusing, especially since they vary between the state and federal levels and from state to state. Laws may vary from state to state, and sometimes change. If you insist the employee reimburse the company, request that the employee write you a check for the appropriate amount instead of deducting that amount from his paycheck. State and federal levels and from state to state … a 9:30, your overpays... The law, products, and any written agreement requiring this is in violation of the.. Suite 300, Falls Church, VA 22043, insurance company can employer charge employee for lost paycheck because liability can be,! 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