employee paying for job supplies?

[james2ko]

I am a piecework based employee technician for a major satellite company here in NJ. They require we purchase our supplies and materials we need to perform our jobs by payroll deduction then reimburse us on the following payroll. Lately, they have increased the price of some of the supplies and materials while giving us a 15-20% paycut. They also mandate we purchase (from them) expensive pieces of equipment required to perform our duties and then withdraw the money from our paychecks interest free in small increments. My question is being that we're employees shouldnt supplies, materials, and instruments necessary to perform our basic job functions be provided to us without paying up front? Are they allowed to make a profit?

[CurtJ.]

I don't know the wage and hours laws well enough in NJ to say for sure, but I think most of what they're doing is okay, and maybe all. You're a piecework employee, so probably get paid by the job. As part of that job, the company hs a legitimate expectancy that the job is done to certain standards. One of the ways to ensure this is that you're buying from them, thus they know you're using their "high quality" parts. So far, I don't think anything wrong in this, although it almost sounds more independent contractor status than piece work employee.

next, you say they raised the prices while decreasing your pay. Well, raising prices is okay and so is cutting pay. I'm not saying it is good, or just, but only that it is not illegal. You also ask about them making a profit off you. Again, I think okay, although it again suggests an independent contractor status that piecework employee. However, many companies charge a profit from one end of the company to the other, like the raw materials side of a rubber plant charging a profit to the finished goods side of a tire plant, all in one company. Many companies have changed their structure/way of thinking to profit centers - where each dept. must make a profit on what they do, even internally. Nevertheless, this might warrant further investigation, just not sure.

finally, you say some larger pieces of equip are paid off through periodoc payments. Here, there does exist a statute: NJSA 34:11-4.4(4), which says:

No Employer may withhold or divert any portion of an employee's wages unless:
a) The employer is required or empowered to do so by New Jersey or United States law; or,
b) The amount withheld or diverted are for:
(4) Payments for company products purchased in acordance with a periodic payment schedule contained in the original purchase agreement....

Thus, it would appear such deductions are improper unless stated in the purchase agreement, whatever that is. I imagine it means when you buy a good from a company you work for, they must clearly explain how it will paid for and if over multiple paychecks, they must state how much, when and for how long. Here, your company seems to follow such a rule, but perhaps nto written. If not, you might be able to challenge it, but then what do you get? Likely a forebearance on this item, the company then makes it harder/more burdensome to buy in future, and you have a target on your back.

well, poke around the nj dol website and see if you can't come up with more.

curt j.