• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Don’t make ex-Employees pay training costs

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. We’ve started requiring employees to repay the company (through payroll deduction) for training costs if they quit or are fired within one year. Are we OK legally? —S.M., Kentucky

A. Here’s a good rule of thumb for all employers: If you think a payroll deduction sounds illegal, it probably is. Payroll deductions shouldn’t be viewed as a substitute for discipline. And they certainly shouldn’t be used to “stick it” to departing employees.

It’s a pretty safe bet that this payroll deduction plan would violate federal and state wage laws. As a practical matter, whenever you make atypical payroll deductions from an employee’s final paycheck, you’re inviting trouble.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/1041/dont-make-ex-employees-pay-training-costs "

Leave a Comment