Q. We fired an employee for destroying company property. The manager wants to deduct the value of the damaged property ($2,500) from the employee’s final paycheck (approximately $2,700). I don’t think we can take so much from the employee’s final paycheck.
A. You are correct; you cannot make the deduction. The Michigan Wage andAct (MWFBA) prohibits an employer from making a deduction from an employee’s paycheck without written consent from the employee “for each wage payment subject to the deduction.” (There are certain exceptions to this rule, but they do not apply when the employer is seeking to recover damages or a debt from its employee.)
The MWFBA also states that the cumulative amount of any deductions, even assuming the employee has agreed in writing, shall not reduce the gross wages paid to a rate less than the minimum wage.
Here, the deduction is impermissible because the employee did not authorize the deduction. The deduction also is impermissible because it would reduce the employee’s wages for the pay period below minimum wage.
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/4205/deducting-cost-of-intentional-damage-from-former-employees-final-paycheck "