Q. Our company allows employees to purchase products on an installment basis. When employees leave and haven’t repaid the full amount, can we deduct the remainder due from their last paycheck?
A. Yes, you may deduct money owed from the last paycheck as long as the employee has authorized the deduction in writing, and the deduction does not bring the check below minimum wage.
Employers can deduct for employee purchases of goods, wares, merchandise, services, facilities, rent or similar items from third parties not owned, affiliated or controlled directly or indirectly by the employer if the employee authorizes such deductions in writing. (34 Pa. Code § 9.1)
However, employers are not permitted to deduct below the minimum wage for an expense or charge that was required or authorized by the employer in connection with the employee’s performance of the duties assigned by the employer. (34 Pa. Code § 9.2.)
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/12820/can-we-deduct-wages-to-cover-unpaid-for-employee-purchases-following-termination "