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Arizona - Employee's Responsibility for Company Equipment

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  • Arizona - Employee's Responsibility for Company Equipment

    I am currently writing new policies regarding company equipment, such as phones, projectors and laptops, that has to do with them being damaged, lost or stolen. We have had several instances where things like this have happened (employees dropping cell phones in pools, leaving laptops in their car over night and it is stolen, etc.), and it costs the company to replace the equipment. Before I write the new policy I want to make sure that it is legal to require employees to replace the equipment if the damage, lost or stolen item was due to their negligence. Any ideas on the legality of this type of policy? What about recovering the money through payroll withholdings?

    I just want to make sure that we are doing right by the employee, as well as looking after the company as well. Thanks for any help.

  • #2
    Start with the federal rules (see below). Past that you need to check the AZ rules, but that is not my state, so someone else will have to answer that one.

    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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    • #3
      Only with written authorization from the employee. AZ RS 23-352

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      • #4
        Az. employers may not withhold or divert any portion of employee wages unless (1) required or empowered to do so by law; (2) the employer has prior written authorization from an employee, or (3) there exists a reasonable good faith dispute as to the amount of wages due. An employer who deducts or withholds wages w/o a good faith dispute may be liable for treble the amt. of unpaid wages.
        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

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        • #5
          Agree with all of the above. Are you talking about deducting from pay or having them pay out-of-pocket? I would be careful about doing this, unless it was negligence that caused the loss/damage. However, I would also say that dropping a cell phone in a pool, and leaving a laptop in the car is negligence.
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