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Company loss

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  • Company loss

    Hello. Question: An employee did not make a nightly required deposit in amount of $1200. The store location was broken into that same night and the entire deposit and merchandise was stolen.

    Can we deduct the amount of deposit (or at least) one/half from the employee's future pay checks? He has said he will pay the money back. Please provide insight on this. Thanks.

  • #2
    Considering that you didn't post your state as requested, I can't say for absolute certain, but the deduction could not take the employee below minimum wage. Why did he say he'd pay it back? Did you tell him you would fire him if he didn't agree?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    • #3
      No Deposit

      The state is Michigan. I selected it, guess it didn't come through.


      • #4
        No Deposit

        Detroit, Michigan-

        He said that he rushed out because he needed to pick up his son and did not make the deposit. He was going to make it the following morning. He was never told that he was going to be fired.


        • #5

          OK, editing again, now that I know.

          I understand he feels responsible and he was, to some extent. And I understand you want to hold him accountable. I just don't have a warm and fuzzy feeling about this, even though the law does not literally prohibit the deduction if the employee authorizes it in writing. Maybe another responder can put this into words better than I can.
          Last edited by Pattymd; 11-06-2007, 11:47 AM.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


          • #6
            Let me put it this way, if the employee had not yet closed up and the store was robbed of the $1,200 and merchandise, would you still want the employee to pay the money back? Isn't that why you carry insurance or should? I believe you would be setting a very bad precedent.
            Somedays you're the windshield and somedays you're the bug.


            • #7
              No deposit

              Thanks for your feedback. I didn't think about it that way.


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