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CA - Net Check with employee related exp

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  • CA - Net Check with employee related exp


    I am a PT office manager for a medical office. We had to fire a physician.

    In our employee contract, it states that the employee physician reimburses employer pro rata for prepaid memberships, hospital affiliations, and malpractice insurance upon leaving. Hence, the employee pays the employer for the unused, prepaid expenses.

    We don't specify what leaving means...leaving = fired or leaving = resigning

    Upon relieving the physician, we obtained the net pay amount from our outside payroll service.

    Question (where I think I made a mistake)....

    I calculated the pro rata expenses the employee physician owed us and deducted this from her final net paycheck. Was this wrong?

    If this is wrong and the contract states that the employee has to reimburse the employer, then can I require an intermediary (friend is a Chief of Police) to in person escrow (former employee, myself, and Chief all present) the money that I unknowlingly deducted and then at the same time receive immediately back what is due to us per contract?

    I know this seems odd, but there is a very low level of trust. I expect that even if we paid back the unauthorized deduction that this physician would never pay the pro rata, reimbursements owed to us This former employee will ignore us and probably skip town.

    Thanks in advance.


  • #2
    We cannot interpret a contract we have not read. You really need to show it to your corporate counsel or a contracts attorney.

    Sorry, but there are limits to what a message board can do and this is beyond us.
    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.


    • #3

      Thanks for your reply. I will touching base with our legal counsel.

      I performed some searches on this site related to deductions, and it sounds like paycheck withholding/deductions that can be applied to a payroll check is really state specific.

      Is there a California Labor Law web site that discusses allowable and unallowable
      paycheck deductions?


      • #4
        This is very generic, but it's a place to start.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


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