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Illegal paycheck deduction in Texas Please help!

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  • Illegal paycheck deduction in Texas Please help!

    I am trying to figure out if this is Illegal and haven't seen anything online in the past couple days so please help me:

    I am a mechanic for a Toyota dealership. Upon recieving warranty work we have to submit a time to Toyota to be compensated for the labor invovled in fixing the warranty problem on a vehicle. If for some reason Toyota denies the labor time, whether it be technician fault or incorrect/outdated times in a book provided, the dealership gets charged back the full amount "overpaid". The manager has threatened to make all technicians responsible fully to repay this rejected time.

    Example: Toyota pays the dealership 100 dollars for the warranty claim and the technician gets paid 20 dollars. The shop profits 80 dollars. After the claim is submitted and if its rejected, Toyota wants the full 100 dollars back. Instead of deducting 20 dollars from the employee's check, the dealership now wants the full 100 dollars.

    The dealership neither gains or loses anything, how exactly can they charge back an employee more than what they were orginally paid?

    Next week the manager will force us to sign a payroll deduction form to make this possible, but if we refuse to sign our jobs may be at risk.
    What can I do? Can anyone provide any legal statutes or codes or website links that may pertain to this?

  • #2
    Contact the Texas Workforce Commission.

    61.018. DEDUCTION FROM WAGES. An employer may not
    withhold or divert any part of an employee's wages unless the
    (1) is ordered to do so by a court of competent
    (2) is authorized to do so by state or federal law; or
    (3) has written authorization from the employee to
    deduct part of the wages for a lawful purpose.

    Acts 1993, 73rd Leg., ch. 269, 1, eff. Sept. 1, 1993.
    (emphasis mine)
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    • #3
      Originally posted by Pattymd View Post
      Contact the Texas Workforce Commission.

      (emphasis mine)
      Ok, I understand the basis of a deduction from a paycheck. Although, if we do not sign this form we are looking at losing our jobs. I am asking if this is a legal practice to begin with. Deducting more from the employee for a job than they were originally paid. Isn't this matter consisdered acceptable losses in the natural course of running a business, even though they aren't losing anything? If I lose my job, can I fight this in court?


      • #4
        That's why I told you to contact the TWC. It's possible that requiring you to sign away your rights in conflict with a particular law or face firing would be tantamount to a wrongful termination.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.