What Can Employers Do If Suspect An Employee Took Money

We often field questions from our clients well-nigh issues relating to employee pay. Hither are some examples of contempo questions nosotros've had.

"I just realized nosotros've been paying a new employee $12.00 per hour instead of the $11.00 that we offered them. Can we deduct the overpayment from their side by side bank check?"
"My employee often fails to balance their till at the end of their shift. Can I withhold their shortage from their check if I tell them in advance that I'll be doing that?"

When a separation of employment occurs, employers realize it's their last run a risk to settle the financial score, and the following types of questions occur:

"An employee just walked off the task and they still have a company jail cell phone, laptop and key to the function. Can we withhold their final paycheck until they render these items?"
"Our business organization advanced an employee $250 so they could pay their rent. They've stopped coming to work. Can we repay the company from their final bank check?"

It's easy to see how unique paycheck issues can arise. So, how exercise we handle these issues without stepping into legal mud puddles?

Know your wage laws, or pay a steep price:

The land'south Section of Labor & Industries is tasked with enforcing rules and regulations relating to workers' wages. In 2011, the L&I collected $1.9 million in unpaid wages for employees from Washington businesses. Pay issues tin can be contentious and litigious. But when the regulators are in charge, better to know the rules upfront than to pay the penalties subsequently the fact!

In most cases during the employment period, you are simply allowed to deduct from an employee'south wages up to the betoken where they are still paid minimum wage. But there are some exceptions to this.

If an employee has enrolled in an employer-sponsored benefits programme, the associated deductions may be taken.
If you have loaned money to an employee, or provided them with a payroll advance, you may take the repayment from their paycheck.
You tin can also charge the employee interest on the loan, as long as information technology is a reasonable amount.

Be sure the employee has provided written authorization for all of these deductions!

What can you do if you over-pay an employee?

Regarding the issue of overpayment due to paying an employee a college wage than agreed upon, under Washington law, y'all may, in most circumstances, recoup the overpayment. Information technology must be for either the wrong wage or for the incorrect number of hours — yous cannot tell an employee their piece of work was substandard and they're not worth what you paid them.

You have xc days from the offset overpayment to discover it and implement a repayment plan. Y'all must provide the employee with accelerate written notice prior to making the aligning.

Tin you dock an employee's pay for shortages in their till?

Tin can you tell employees that you'll exist docking their pay for shortages in their till? The answer to that is a qualified no.

The only time you lot are allowed to practise this is on their last paycheck. And in this example, there must exist established policies the employee is aware of, and the employee must have counted the money in the till prior to and and subsequently their shift, and accept been the simply person who had access to the cash annals during their shift.

The aforementioned policy applies to:

Breakages
Damage to equipment
Credence of bad checks in violation of a company policy

In all of these circumstances, a deduction may be made only if there is a prior agreement, the incident happened in the final pay period, and the reduction never reduces an employee's pay below minimum wage.

Can yous withhold a final paycheck to force an employee to return company belongings?

And then what about those terminal paychecks? Washington's law requires terminated employees to be paid at the next regularly scheduled pay day.

While you do not have to hand them a paycheck on their last mean solar day of work, yous may not withhold their paycheck until they take returned company property. In fact, if you lot exercise fail to pay your terminated employee on time, they may sue you in civil courtroom and exist entitled to double amercement.

If your employees are issued company holding, such as rubber equipment, laptop computers, cell phones, etc., you should have them sign an understanding that they will return these items upon their termination.

This agreement should contain:

Data nigh the monetary value of the items
Terms stating that the employee will repay the company for whatever items not returned
Acknowledgement that this amount can be withheld from their final cheque

Just call back, for this blazon of deduction, you cannot reduce their pay below minimum wage. Small claims courtroom may exist your best bet for the rest of the coin.

Recovering money from employee payroll advances:

In this economy, businesses sometimes find themselves giving employees payroll advances to help them out with curt term financial shortages. If you lot practise this, document information technology in writing with the employee's agreement. You are able to recover the unpaid portion from a final paycheck, even if the employee's pay drops below minimum wage.

The wrap-upwardly:

The Section of Labor & Industries volition not intervene on conflicts arising about employee benefits. Sometimes, employers balk at paying unused sick time or vacation time to a parting employee who is leaving under less than optimal circumstances.

While L&I will not become involved, keep in mind that y'all must follow your company's policy in a nondiscriminatory fashion. A disgruntled former employee can ever sue in pocket-size claims court for unpaid employee benefits.

We all remember that onetime slogan, "Yous tin can pay me now, or you tin can pay me afterwards." When yous're dealing with money, it's piece of cake for emotions to get involved and situations to escalate. Understanding and following the rules helps everyone know what to look.

Source: https://www.westsoundworkforce.com/when-can-you-withhold-money-from-an-employees-check/

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