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Reducing Pay Check

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  • Reducing Pay Check

    I work for a company in Texas and we laid off a couple of employees recently, and there is an issue of an employee that has used more vacation time than she has accrued. We are in the process of taking these vacation hours back from her final check, but they are the same amount as hours that she will be paid for on her final check, creating a zero check. It is my understanding that by law we still have to pay at least minimum wage for the hours that she actually worked. Can you please let me know where I might find documentation that shows whether I'm right or wrong on this?

    Thank you
    Last edited by SWilson; 09-28-2004, 09:58 AM.

  • #2
    Deduction

    Did the employee sign an agreement at the time of taking the vacation, authorizing repayment through payroll deduction should he/she be terminated prior to accruing the vacation? That factor is critical to your ability to recover the vacation from wages.

    The DOL looks at advanced vacation as advanced pay, rather than a deduction. Deductions are for things that are paid by the employee for the benefit of the employer, such as for uniforms, tools, etc. Advancing the vacation is not for the benefit of the employer. It is a loan of monies at the benefit of employees. So, it is believed that you can leave a person with a zero balance when recovering vacation.

    A couple of places where you can view the DOL's view about deductions are at: http://www.dol.gov/esa/regs/compliance/whd/whdfs16.htm AND
    http://www.dol.gov/dol/allcfr/ESA/Ti...3/29CFR3.5.htm

    Let me know if you have any other questions.
    Lillian Connell

    Forum Moderator
    www.laborlawtalk.com

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