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Recouping Costs from Terminated Employees
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Recouping Costs from Terminated Employees
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
If an employee does not return property or returns it damaged, can we deduct the amount due from his last paycheck?
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Recouping Costs from Terminated Employees

posted at 4/9/2010 4:22 AM EDT
Posts: 58
First: 12/1/2006
Last: 9/2/2011
If an employee does not return property or returns it damaged, can we deduct the amount due from his last paycheck?

Recouping Costs from Terminated Employees

posted at 4/9/2010 5:37 AM EDT
Posts: 562
First: 11/12/2009
Last: 9/14/2011
Unless the employee has signed a document acknolwedging and permitting deductions from final pay for such situations, usually not.

Recouping Costs from Terminated Employees

posted at 4/9/2010 5:41 AM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
Agree with Nork. But it is often dependent on state wage law.

What state are you in? Even in TX, which is more employer friendly, you must have a signed authorization to take any deductions. And usually it has to be specific. It can not just be a signed handbook authorization where this is one of a gazillion policies that they signed at hire.

Even if you can deduct, you still get back to the FLSA which requires at least minimum wage and overtime for all hours worked in the pay period. So you could only deduct the difference. And you can NOT withhold the last paycheck until property is returned/fixed in most states.

That said, your recourse is usually through small claims court.

Recouping Costs from Terminated Employees

posted at 4/9/2010 6:23 AM EDT
Posts: 58
First: 12/1/2006
Last: 9/2/2011
We are in VA. My boss wants to have them sign something that says we can deduct it from their last paycheck. Are there other issues with this? What about deducting a negative leave balance from the last check?

Recouping Costs from Terminated Employees

posted at 4/9/2010 6:41 AM EDT
Posts: 1103
First: 3/16/2007
Last: 8/19/2011
Google is your friend

http://resources.lawinfo.com/en/Legal-FAQs/Wage-And-Hours/Virginia/what-deductions-may-an-employer-make-from-an-.html

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