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payroll deduction for cash shortage Florida

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  • payroll deduction for cash shortage Florida

    Hi guys. Here's the deal. I have a salaried manager in Florida who had $500.00 missing from his drawer. He was written up about the cash shortage. However, the VP of this division wants to payroll deduct this amount from future checks. Is this legal? We do not have a cash violation policy or cash accountability policy in place. Some HR peers are saying no it's illegal, some are saying okay with written knowledge of the employee, some say okay as the long as the amount doesn't take him below minimum wage for hours worked. So even if I get the employee to sign a payroll deduction form that will deduct an amount from each check until this amount is paid back, is this legal? I have received several offers of advice of how to handle the situation, but what I need now is to know if it is LEGAL to do so. I have searched on www.dol.gov and not finding too much. HELP!

  • #2
    Depending on state law, all of your HR peers are correct.

    I'll leave it to one of the payroll people to determine what your state law says.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Federal rules can be found at the following website. Basically federal rules allow the recovery with restrictions.

      I have no idea what rules Florida has (if any) on this subject. Florida is generally considered to be a "just like federal" state, although I do not know as a fact that is true in this situation.

      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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      • #4
        Basically any amount above the minimum salary of $455 can be deducted from a salary exempt employee. Minimum wage is not applicable here.

        "The final rule at 29 C.F.R. § 541.600(a) requires only that exempt employees be paid a guaranteed salary of at least $455 per week, and any additional compensation above this salary amount is generally something that may be agreed upon between the employer and the employee. The prohibition against improper deductions from the guaranteed salary under 29 C.F.R. § 541.602(b) does not extend to any such additional compensation provided to exempt employees."

        For the complete info see the link below...

        http://www.dol.gov/esa/whd/opinion/F...06_24_FLSA.pdf
        ========================================

        "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)

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        • #5
          The only rule Fl. has re making paycheck deductions is: Public employers can make wage deductions authorized by employees of state & local government. FSA code 112.171
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