Under the laws of all states in this country although the employer is required to replace the paycheck that you lost, since you are the one that lost the check, you are responsible for the stop payment fee for it. Your employer only has to pay you for the time you worked. But first consider whether your response may be overkill. If so, is the employer required to have authorization from the employee to make a payroll deduction for such a charge? In Colorado, an employer must pay employees at least once per month or thirty (30) days, whichever is longer, on regularly scheduled pay days. Can employers charge employees a stop payment fee for replacing a lost or stolen check? Employers can certainly take measures to encourage employees to be more careful, but be careful how you do that. Labor Code Section 401. d. Uniforms. Please verify any direct legal advice or rate information with your attorney, insurance company, or agent, respectively. All rights reserved. Specific deductions can be made in Washington only if they happened during the final pay period, such as alleged employee theft and breakage or loss of equipment if the employer can prove that these acts were intentional. Employers can certainly take measures to encourage employees to be more careful, but be careful how you do that. If an employer requires a bond of an applicant or employee, the employer must pay the cost of the bond. One of our employees is constantly misplacing things, like his W-2 forms and his checks. 8-4-103 Because liability can be substantial, employers should consider the following reminders about proper wage deductions. The only limitation is that these deductions cannot drop your pay below the federal minimum wage. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome Florida. These policies generally reflect employers' legitimate concerns about lost revenue resulting from employees' negligent or willful misconduct. Can you fine workers for lost or damaged company property or make them pay for it out of their own pockets? Enter your email address to instantly generate a PDF of this article. 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. Labor Code Section 2802, Industrial Welfare Commission Orders, Section 9. — D.L., Iowa, A. Federal employment laws allow employers to make paycheck deductions under specific circumstances. A: Unless covered by a collective bargaining agreement or other form of pay guarantee, an employer can change an employee's rate of pay as long as the reduction does not bring an employee's wage below the applicable federal or state minimum wage. However, Oregon employers may not accomplish this by withholding money from the employee’s paycheck. Deductions for Cash Register Shortages and Breakage. If the employee does not voluntarily pay the employer, the employer cannot take the money from the employee's pay--but it could fire him or her (assuming there is not employment contract preventing this) and/or sue the employee … Find the right lawyer for your legal issue. For instance, a worker may have a uniform to return. No. Your employer may make a mistake and pay you too much. This means that the check will not be honored if someone attempts to cash it. If an employer requires that an employee wear a uniform, the employer must pay the cost of the uniform. A. Unfortunately, we do not offer direct deposit for our weekly paid employees (long story - but its just the way it is). Florida has no state law on deductions, meaning employers can generally charge you for mistakes as long as … Such circumstances include unreturned company property. Payroll Practices. Under Texas law, employers can deduct the cost of losses from employees' paychecks, but only with the employee's prior written authorization . ","acceptedAnswer":{"@type":"Answer","text":"If the employee was negligent, or careless, in losing the paycheck, and as a result, the employer incurred some costs (e.g. Of course, if you signed a written agreement allowing it, they can. 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. Therefore, if you only earn minimum wage, your employer cannot charge you for any losses. Typically, employers will wait until notification of the stop-payment before they will issue a new paycheck. Copyright © 1995-2021  |  FreeAdvice.com  |  15310 Amberly Dr, Suite 250, Tampa, FL 33647  |  Privacy Policy  |  Terms & Conditions  |  CCPA. In some states, employers may be able to take precautionary steps by charging employees the stop Whether or not your employer can charge you for these mistakes depends on … 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. In California, employers must provide all tools and equipment necessary to perform the job; employees can't be required to pay at all. authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. If your answer is “yes,” or even “maybe,” you should reconsider. stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. Texas is one of those states in the middle. Instantly access free expert advice, management strategies and real-life examples of workplace Broken or damaged equipment. If the employee asks the employer to mail their check, instead of the two afforementioned options, and the employee is informed (prior to it being mailed) that if they choose to have their check mailed, and for some reason it is not delivered, they will have to wait 10 business days before a replacement check can be issued, unless they want to pay the stop payment fee in order to receive a replacement check … If the employee was negligent, or careless, in losing the paycheck, and as a result, the employer incurred some costs (e.g. If your cash register drawer comes up short or you damage merchandise, can your employer charge you for the loss? Q: Can an employer change an employee’s rate of pay? The only requirement is that the deductions cannot cause your pay to be reduced below the federal minimum wage. Laws may vary from state to state, and sometimes change. Employers are prohibited by Sections 191 and 193 of the New York State Labor Law from charging an employee through wage deduction for… Any fees incurred for stopping payment on a check In Minnesota, there are only limited permissible deductions an employer can make from an employee’s paycheck without the employee’s permission. Nothing on FreeAdvice.com constitutes legal advice and all content is provided for informational purposes only. Copyright © 2021 Business Management Daily. Can we make him pay a fee? IMPORTANT NOTICE: The Answer(s) provided above are for general information only. requirements for the amount employers may deduct from employees' paychecks. The Wage and Hour Division of the U.S. Department of Labor has stated that “deductions from the salaries of otherwise exempt employees for the loss, damage, or destruction of the employer's funds or property due to the employees' failure to properly carry out their managerial duties (including where signed “agreements” were used) would defeat the exemption because the salaries would not be … Some meal, lodging, and transportation expenses. Many employers issue laptops or smartphones to their employees. Employers may NOT charge the employee for reissuing a new paycheck, regardless of the circumstances under which the check was lost. Check the state law and regulations on wage payments. We’re thinking this might make him more careful. 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. stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. It’s getting annoying. The employer cannot make these deductions from final wages if they will cause the employee's pay to drop below the minimum wage. What Can an Employee Do? 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. It is also a good idea to check your state’s employment law. 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. (Find details on state wage laws, plus links to state labor department sites at www.dol.gov/whd/state/state.htm.). The bank will undoubtedly charge the company a ‘stop payment’ fee, which will probably be around $25 to $30 or so. Or, can the employer just assume the employee has "lost" the employer issued equipment and deduct it from their pay? "}}]}, Asked on December 26, 2012 under Employment Labor Law, Florida. information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you. After all, you lost the check, not the employer. stop check fee; a service fee to its payroll processor), the employer can expect the employer to reimburse it for those costs. Questions frequently arise when employers make changes or deductions to paychecks regarding employee benefits, requirements, and time away from work. If your employer overpays you she can take it out of another paycheck in the future. Under federal law, the general rule applies: As long as the employee still earns at least the minimum wage after deductions, there's no rule against charging losses and damage to the employee.Many states have adopted stricter rules, however. If the employee does not voluntarily pay the employer, the employer cannot take the money from the employee's pay--but it could fire him or her (assuming there is not employment contract preventing this) and\/or sue the employee (including in small claims court) for the money.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. Minn. Stat 181.79. What happens when the company car is in a fender-bender? Insurance information may be different than what you see when you visit an insurance provider, insurance agency, or insurance company website. As a result, many employers have a policy requiring employees to reimburse them for these types of losses, usually through payroll deductions or a deduction from the employee's final paycheck. 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. Colorado Stat. Employers must also pay for replacement PPE used to comply with the regulations. An employer must pay wages within ten (10) days of the end of the pay period for which the wages were earned. Generally, employees may not be forced to pay for these things if it causes their wages to fall below minimum wage and overtime rates. 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