Q. Can I dock an employee’s pay for failing to meet a production quota?
A. I would recommend not retroactively docking an employee’s pay for failing to meet production quotas. It could violate the Pennsylvania Wage Payment and Collection Law (WPCL), the federal Fair Labor Standards Act or both. In particular, the WPCL requires employers to pay employees for hours worked within a prescribed period of time.
Instead of docking pay, you could discipline an employee for failing to meet the production quota. It would be help-ful to spell out ahead of time exactly what the production quota is and what action will be taken for failure to meet the quota (such as a written warning for the first failure, followed by an unpaid suspension of employment for the second violation).