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UPS - Withholding money from check Indiana

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  • UPS - Withholding money from check Indiana

    Currently an employee at(deleted), and they are withholding money out of our check starting in january 2009. They are taking it and keeping it until December and calling it a christmas bonus. Is this legal to withhold money from someone's check?
    Last edited by cbg; 12-04-2008, 08:00 AM.

  • #2
    What does the union contract say?

    Is this a reduction in GROSS pay (before taxes) or a deduction from NET pay (after taxes)?

    Regarding the latter:
    When can my employer make deductions from my paycheck?

    Indiana law requires three conditions to be met in order for a wage deduction to be valid. First, the agreement for the deduction must be in writing, signed by the employee, by its terms revocable at any time by the employee upon written notice, and agreed to in writing by the employer. Second, a copy of the deduction agreement must be delivered to the employer within ten days of its execution. Third, only certain categories of deductions are allowed, including: premiums on an insurance policy; contributions to a charitable organization; purchase price of bonds, securities or stock of the employing company; labor union dues; purchase price of merchandise sold by the employer to the employee; amount of loan made to the employee by the employer; contributions of the employee to a hospital service or medical expense plan; and payment to an employee's direct deposit account.
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    • #3
      Problem is, I am in management so the union does not apply to me. I am a salaried employee.


      • #4
        Then the cite prohibiting such a deduction would apply.
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        • #5
          Cite...meaning law? Sorry new to this. How do I go about resolving this?


          • #6
            To "cite" is to quote, generally, a law or regulation.

            You would file a claim with the state Dept. of Labor. But you can't do it until the first deduction has been made.

            And not the legal issue here, but I've been a payroll manager for large corporations for a long time, and I can't imagine the payroll is too happy about being a "bank" for the employees. I don't imagine they would be paying you interest.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


            • #7
              If I was payroll, I could find other things to be unhappy about. Like maybe a possible violation of the federal FLSA "free and clear" rule as well as what ever problems the state would have.

              The other problem I have is that the employer was named and that employer is big enough to have lawyers. I am sort of wondering what facts are missing from the question. The situation sounds strange. I do not see just what the employer is trying to get out of this other then a lot of work, and I do not see what fig leaf the employer is going to try to use hide beyond. The action sounds illegal, but it also sounds pointless. If this was a small employer, I would assume that the employer is just confused, but for a large well known employer, I have to assume that there are missing facts. Normally when a big well known company cuts legal corners it is very clear exactly why they are taking the action.

              One last point. Deductions against earned wages are legally problematic. Reducing wages on a go forward basis with proper legal notice is not legally problematic. For example, reducing wages by 10% on a go forward basis and promises to pay a year end bonus is legal if done correctly. This action is legally different then taking a deduction against wages already earned, although both actions can have the same practical result over time.

              Perhaps if asked the employer would be using a radically different explanation of what is happening then the originally question. Or not.
              "Reality is that which, when you stop believing in it, doesn't go away".
              Philip K. **** (1928-1982)


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