Collecting for damaged equipment — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Collecting for damaged equipment

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Q. We recently terminated an employee and subsequently learned that he damaged company equipment through his own negligence. My boss wants to deduct the cost to repair the damage from his final paycheck. Is this legal?

A. No, this practice would violate the New York Labor Law, which states, among other things, that deductions from wages are permissible only when required by law or authorized in writing by the employee and for the employee’s benefit. Most states have similar provisions regarding deductions from wages. Check those, too, if you do business in other states.

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