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OREGON: Deducting pay for damage to property Oregon

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  • OREGON: Deducting pay for damage to property Oregon

    Is it legal, in the state of Oregon, to deduct wages from an employee to compensate for damages done to company and/or customer property?
    We are a line haul company and want to know our rights when it comes to employees who damage customer property or company vehicles.

  • #2
    http://www.oregon.gov/BOLI/TA/T_FAQ_Tadeduct.shtml
    http://www.oregon.gov/BOLI/TA/T_FAQ_Tadeduc2.shtml
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Basically then, what I understand based on the state regulations, we cannot.

      However, if we work strictly with in these guidelines, we can (legally) give the employee a written statement informing them of the total dollar amount being charged back to them for damages to property and allow them to identify how they would like to pay for the damages.

      If they select to pay the damages to the company themselves, then we would need to pursue legal action through a court should they fail to pay.

      However, if they select to have the amount deducted from their paychecks, and approve a specific dollar amount to have deducted each period, then legally we should be allowed to make those deductions, correct?
      Last edited by SUNSHINEDELIVERY; 09-07-2007, 09:34 AM.

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      • #4
        You may be, but I wouldn't make that decision on my own. I'd call the BOLI to inquire.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          Oregon: Employers can't make deductions for the benefit of employers. State law allows deductions only when one of the following four conditions is present: (1) the employer is required to do so by law, (2) the employee has authorized the deduction in writing and it's for the employee's benefit and is recorded in the employer's books. (3) the employee has voluntarily authorized a deduction for any other item provided the employer isn't the ultimate recipient of the money, and the ded. must be recorded in the employer's books, & (4) the ded. is provided for in a collective bargaining agree. Employers also may deduct the fair mkt. value of services furnished by the employer for the private benefit of employees. ORS 652.610 & 653.035
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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          • #6
            Betty,
            So i take it that the law states that a company cannot deduct from an employee’s salary any monetary compensation for anything at all if it goes directly back to the employer.

            Do i have that right?

            It seems kind of odd to me that an employer would be able to force, without consent, an employee to pay for damages done during the course of their employment.

            I'm wondering if most jurisdictions prohibit that type of action.

            Eric

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            • #7
              Originally posted by sposito View Post
              It seems kind of odd to me that an employer would be able to force, without consent, an employee to pay for damages done during the course of their employment.
              Federal law (FLSA) does allow this (with restrictions); Oregon law apparently does not. The employee is subject to which ever rule is most favorable to them (Oregon in this case). Not all states have recovery rules more favorable to the employee, so in many states, federal rules are indeed applicable.

              http://www.dol.gov/esa/regs/compliance/whd/whdfs16.htm
              "Reality is that which, when you stop believing in it, doesn't go away".
              Philip K. **** (1928-1982)

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              • #8
                ORS 652.610(b) The deductions are authorized in writing by the employee, are for the employee’s benefit, and are recorded in the employer’s books.

                Note- are for employee's benefit - not employers.

                add'l. info: ORS 18.736 pertains to garnishments due to judgments against employee.
                Last edited by Betty3; 09-07-2007, 05:01 PM. Reason: add add'l. info
                Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                Comment


                • #9
                  Oregon: Q. If an employee is negligent and destroys company property, can an employer deduct the value of that property from the paycheck?
                  A. No. Payroll deductions may not be made for this purpose. Disciplinary action may be taken and the employer could pursue reimbursement for damages through the court system.

                  Q. Are payroll deductions allowed if an employee admits to stealing or negligence and agrees in writing to pay the money back through payroll deductions?
                  A. No, a signed authorization would not be valid since this type of deduction is not permitted by statute.
                  Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                  Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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                  • #10
                    See pattyMD's links - I have the same ones for that info (links to BOLI) - it can maybe be done but I sure would check first as pattyMD also recommended. I'm not so sure it can but I'm certainly no expert on Oregon law - just my opinion on what I have read.

                    The statutes I typed out & the statute #'s in my 4:49pm post I typed from 2007 info written by two Oregon employment law attorneys.
                    Last edited by Betty3; 09-07-2007, 06:02 PM. Reason: add info
                    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                    Comment


                    • #11
                      Originally posted by joec
                      Please lets us know what they tell you.
                      JoeC
                      Yes, please - then we will all know. Betty
                      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                      Comment

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